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Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Shandong Zhonglu Oceanic Fisheries Co., Ltd. Semiannual Report of 2026 [August 26, 2026] Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Section I Important Information, Contents, and Definitions The Company"s Board of Directors and the directors and officers ensurethat the content of the semiannual report is true, accurate, and completewithout any false record, misleading statement, or significant omission andbear individual and joint and several legal liability. Wang Huan, the principal of the Company, Fu Chuanhai, the person incharge of accounting, and Lei Lixin, the person in charge of the accountingbody (accounting supervisor), declare that the financial report in thissemiannual report is true, accurate, and complete. All directors attended the Board meeting at which this semiannual reportwas considered. The Company describes potential risks in its operations andcountermeasures in "X. Risks faced by the company and countermeasures" inSection III, "The Management"s Discussion and Analysis." Investors arereminded to pay attention to the relevant content. This report is prepared in Chinese and English. Where the Chinese andEnglish texts are interpreted in different ways, the Chinese text shall prevail. During the reporting period, there is no significant risk that has asubstantial impact on the production and business operation of the company.Investors are requested to pay attention and read it carefully. The Company plans not to distribute cash dividends, not to distributebonus shares, and not to convert reserves into share capital. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Contents Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. List of Documents for Reference(I) Financial statements with the signatures of the principal of the Company, the person in charge of accounting, and theperson in charge of the accounting body and affixed with the Company’s seal.(II) The originals of all corporate documents and the manuscripts of all announcements disclosed during the Reporting Period.(III) The text of the company"s 2026 semi-annual report containing the signature of the company"s responsible person. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Definitions Term Refers to ContentThe Company, Company Refers to Shandong Zhonglu Oceanic Fisheries Co., Ltd. Shandong State-owned Assets Investment Holdings Co.,Shandong Guotou Refers to Ltd.This report Refers to The Semiannual Report of 2026 prepared by the Company Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Section II Company Introduction and Key Financial IndicatorsI.Company’s InformationShort stock name Zhonglu B Stock code 200992Short stock name before Nonechange (if any)Exchange where the stocks Shenzhen Stock Exchangeare listedChinese name 山东省中鲁远洋渔业股份有限公司Short Chinese name (if any) 中鲁远洋Foreign name (if any) Shandong Zhonglu Oceanic Fisheries Company LimitedAcronym of the foreign name ZLYY(if any)Legal representative Wang HuanII. Contact Person and Contact Information Board Secretary Securities Affairs RepresentativeName Yu Xiaoqiang Tang YuntaoAddress Center, No. 31 Xianxialing Road, Center, No. 31 Xianxialing Road, Laoshan District, Qingdao, Shandong Laoshan District, Qingdao, ShandongTel 0532-55717968 0532-55715968Fax 0532-55719258 0532-55719258Email zl000992@163.com zl000992@163.comIII.Other informationHas the registered address, office address, postal code, website, email address, etc. of the company changed during the reportingperiod□Applicable ? Not applicableThe Company"s registered address and office address, as well as its postal code, website, and email address remained unchangedduring the reporting period. For details, please refer to the 2025 Annual Report.Has the information disclosure and preparation location changed during the reporting period□Applicable ? Not applicableThe website and media name and website of the stock exchange where the company discloses its semi-annual report, and thepreparation location of the company"s semi-annual report remain unchanged during the reporting period, as detailed in the 2025annual report. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Has the information disclosure and preparation location changed during the reporting period□Applicable ?Not applicableIV. Key Accounting Data and Financial IndicatorsWhether the Company is required to make retroactive adjustments or restate the accounting data for previous years□Yes ? No Increase/decrease of current reporting period compared Current reporting period Same period of previous year with the same period of previous yearOperating revenue (RMB) 410,581,705.72 677,380,077.49 -39.39%Net profits attributable to theCompany’s shareholders -36,574,394.03 -13,337,046.26 -174.23%(RMB)Net profits attributable to theCompany’s shareholders after -39,026,062.11 -15,340,155.55 -154.40%deducting nonrecurring items(RMB)Net cash flows from operating -31,864,804.21 82,605,264.02 -138.57%activities (RMB)Base earnings per share -0.1375 -0.0501 -174.45%(RMB/share)Diluted earnings per share -0.1375 -0.0501 -174.45%(RMB/share)Weighted average return on -3.41% -1.26% -2.15%equity Increase/decrease at the end End of current reporting of current reporting period End of previous year period compared with that at end of previous yearTotal assets (RMB) 2,102,157,623.14 2,168,213,094.94 -3.05%Net assets attributable to theCompany’s shareholders 1,051,207,294.29 1,094,666,215.62 -3.97%(RMB)V. Differences in Accounting Data under Domestic and Foreign Accounting Standardsaccounting standards and Chinese accounting standards□Applicable ? Not applicableFor the Company, there was no difference in net profits and net assets in the financial report disclosed both according tointernational accounting standards and Chinese accounting standards during the Reporting Period. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.accounting standards and Chinese accounting standards□Applicable ? Not applicableFor the Company, there was no difference in net profits and net assets in the financial report disclosed both according to overseasaccounting standards and Chinese accounting standards during the Reporting Period.VI. Non-recurring profit and loss items and amounts? Applicable □Not applicable Unit: RMB Item Amount RemarkGains or losses on the disposal of non-current assets (including the write-off of -155,930.64accrued asset impairment provisions)Government grants recognized in profitor loss (excluding government grants thatare closely related to the Company’sbusiness, meet the standards of nationalpolicies, are received in accordance withestablished standards, and have acontinuous impact on the Company’sprofit or loss)Trustee income from trusteeship 849,056.58Other non-operating incomes and -1,597.73expenditures than the aboveLess: amount of the effect of the incometax amount of the effect of the minorityinterest (after tax)Total 2,451,668.08Details of other profit/loss items that conform to the definition of nonrecurring items:□Applicable ? Not applicableFor the Company, there was no detail of other profit/loss items that conform to the definition of nonrecurring items.Explanation of the situation where the nonrecurring items listed in the Explanatory Announcement No. 1 on InformationDisclosure for Companies Offering Their Securities to the Public - Nonrecurring Items are defined as recurring items□Applicable ? Not applicableThe Company had no situation where it defined the nonrecurring items listed in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items as recurring items. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Section III The Management’s Discussion and AnalysisI. Company’s Main Businesses during the Reporting PeriodDuring the Reporting Period, the Company’s primary businesses included long range fishing, marine transport, and cold storageprocessing and trading. These businesses supported and promoted each other, forming a complete industrial chain.During the Reporting Period, the Company had 27 long range fishing boats, including 14 large ultra-low temperature tunalongliners, nine (sets of) large tuna seiners, two medium-sized trawlers, and two squid fishing boats, which operated in the IndianOcean, the Atlantic, and the Pacific, respectively. Relying on the business strategy of "stabilizing, expanding, and upgrading," thefleet consolidated its operational advantages in the Atlantic, expanded the space for longline projects, and improved the catch ofpurse seine in the central and western Pacific.During the Reporting Period, the Company"s eight large marine transport vessels featured excellent performance, strictmanagement, and standard services, making them suitable for the long range frozen and refrigerated transport of aquatic products,meat, poultry, vegetables, and fruits. Their service areas covered some areas and ports of the central and western Pacific, theIndian Ocean, the Atlantic, North America, and South America. Affected by the combined factors of concentrated dry-docking andoverhaul in the first half of the year and the temporary sluggishness of the refrigerated transport market, the overall vesseldeparture rate and transport volume declined. Currently, all vessels have completed their overhauls and resumed seaworthiness. Inthe second half of the year, the Company will dynamically optimize route deployment and intensify the development of cold-chaincargo sources, striving for a steady recovery in transport capacity and operating efficiency.During the Reporting Period, the Company successfully passed two major international food safety audits, BRCGS (Global FoodSafety Standard) and IFS (International Food Standard), and obtained the BRCGS A+ certificate and the IFS Advanced certificate,which laid the foundation for exporting products to the EU and further expanding international markets. A trinity product co-creation mechanism of "customer-sales-R&D" was established, integrating product development into the market and orienting ittoward the market.Market position: the vice-presidential unit of the China Overseas Fisheries Association, the presidential unit of the QingdaoOverseas Fisheries Association, and a leading agricultural enterprise in Qingdao.II. Analysis of Core Competitiveness The Company is a comprehensive and export-oriented company engaged in overseas fishing that was incorporated in Julycomprehensive listed fishing company, the Company"s core competitiveness lies in the following aspects: (1) Through more thanbusinesses, including overseas fishing, deep processing, trading, cold storage logistics, ocean shipping, and venture capital in themodern marine industry. The Company"s main businesses involve key links in the industrial chain. The businesses of theCompany"s operating entities are highly associated, which meets the conditions for holistically collaborative operations. Thisprovides a guarantee for the Company to reform its operations and strengthen and extend the industrial chain. (2) As one of theearliest companies engaged in overseas fishing in China, the Company started production and operations early from a high groundwith competent human resources and assets. Through years of dedicated operations, the Company has gathered a pool ofprofessionals specializing in the relevant fields of long range fishing. (3) The long-range fishing industry is part of China"s "Belt Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.and Road" Initiative, the strategy of building a strong marine country, and part of Shandong"s strategy of building a strong marineprovince. There are development opportunities from the adjustment of the industrial depth. (4) The Company keeps cultivating theglobal sea transport markets. It has established long-term, stable cooperation with customers and built a service brand withdistinctive "Zhonglu characteristics," thus enjoying a high reputation on the Asia-Pacific refrigerated transport market. (5) TheCompany has the earliest ultra-low temperature cold storage and tuna processing plant in China, which strengthens the Company"sadvantages in tuna processing and trading. (6) The Company carries out long range fishing in the Atlantic, the Pacific, and theIndian Ocean, reaches most of the world"s major ports with its ocean shipping, and covers many countries with import and export.With the implementation of the "Belt and Road" strategy, the countries along the "Belt and Road" will have stronger trust in eachother and establish closer cooperation. In addition, the country and the governments at all levels have rolled out a suite ofdevelopment plans and industrial preference policies. All these have brought new development opportunities to the Company. TheCompany will leverage the aforementioned advantages to pioneer, innovate, forge ahead, and proactively engage itself in theconversion of old and new growth drivers. It will accelerate transformation and upgrading, vigorously extend the industrial chain,and further improve its influence and competitiveness in domestic and even international markets.III. Analysis of Main BusinessesOverviewRefer to “I.Company’s Main Businesses during the Reporting Period”Year-on-year changes in major financial data Unit: RMB Year-on-year increase This reporting period Same period last year Reason for change or decrease Mainly due to a significant decrease in the operating time and production and sales volume of long range fishing in some seaOperating income 410,581,705.72 677,380,077.49 -39.39% areas compared with the same period of previous year, and a decrease in sales volume of the refrigerated processing and trading business. Mainly due to a significant decrease in the operating time and production and sales volume of long range fishing in some seaOperating costs 403,248,048.82 657,100,642.65 -38.63% areas compared with the same period of previous year, and a decrease in sales volume of the refrigerated processing and trading business.Sales expenses 1,892,976.36 1,971,307.26 -3.97%Administrative 28,370,121.32 28,243,483.54 0.45% Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.expenses Mainly due to an increase in netFinancial expenses 16,255,120.70 3,894,737.28 317.36% exchange losses during the current period.Income tax expenses 966,105.34 1,065,757.84 -9.35% Mainly due to a decrease in cashNet cash flow received from sales ofgenerated from -31,864,804.21 82,605,264.02 -138.57% goods and provision ofoperating activities labor services during the current period. Mainly due to decreased expendituresNet cash flow on the purchase andgenerated from -30,783,925.26 -73,136,184.28 57.91% construction of fixedinvestment activities assets during the current period. Mainly due to aNet cash flow decrease in cashgenerated from 14,184,849.59 22,515,116.91 -37.00% received fromfinancing activities borrowings during the current period. Mainly due to an increase in cashNet increase in cash received from sales of -58,754,069.16 38,150,559.41 -254.01%and cash equivalents goods and provision of labor services during the current period.Significant changes in the composition or source of profits of the company during the reporting period□Applicable ? Not applicableThere have been no significant changes in the composition or source of profits of the company during the reporting period.Composition of operating income Unit: RMB This reporting period Same period last year Year-on-year Proportion in Proportion in increase or Amount Amount decrease operating revenue operating revenueTotal operatingrevenueBy industryLong range fishing 164,458,997.15 40.06% 325,580,101.79 48.06% -49.49%RefrigeratedtransportCold storageprocessing and 237,450,802.98 57.83% 343,420,465.83 50.70% -30.86%tradingOthers 3,157,753.86 0.77% 3,657,630.81 0.54% -13.67%Internal trade -50,155,194.90 -12.22% -65,669,091.00 -9.69% -23.62%offsetBy productLong range fishing 164,458,997.15 40.06% 325,580,101.79 48.06% -49.49%Refrigeratedtransport Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Cold storageprocessing and 237,450,802.98 57.83% 343,420,465.83 50.70% -30.86%tradingOthers 3,157,753.86 0.77% 3,657,630.81 0.54% -13.67%Internal trade -50,155,194.90 -12.22% -65,669,091.00 -9.69% -23.62%offsetBy regionChina 216,176,055.43 52.65% 360,903,587.31 53.28% -40.10%Foreign countries 194,405,650.29 47.35% 316,476,490.18 46.72% -38.57%Industries, products, or regions that account for more than 10% of the company"s operating revenue or profit? Applicable □Not applicable Unit: RMB Year-on-year Year-on-year Year-on-year Gross Operating increase/decrea increase/decrea increase/decrea Operating costs profit revenue se in operating se in operating se in gross margin revenue costs profit marginBy industryLong rangefishingRefrigeratedtransportCold storageprocessing and 237,450,802.98 213,274,191.85 10.18% -30.86% -35.15% 5.95%tradingBy productLong rangefishingRefrigeratedtransportCold storageprocessing and 237,450,802.98 213,274,191.85 10.18% -30.86% -35.15% 5.95%tradingBy regionChina 216,176,055.43 204,915,212.91 5.21% -40.10% -43.06% 4.92%ForeigncountriesWhen the statistical caliber of the company"s main business data is adjusted during the reporting period, the company"s mainbusiness data for the most recent period adjusted based on the caliber at the end of the reporting period□Applicable ? Not applicableIV. Analysis of Non-main Businesses?Applicable □ Not applicable Unit: RMB Amount Proportion in total profit Explanation of cause Whether sustainable Mainly long-term equity investment incomeInvestment income -291,046.67 0.76% No accounted using the equity method in the current period Mainly provision forAsset impairment -2,039,274.87 5.33% No inventory impairment in the Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. current period Mainly loss on scrapping ofNon-operating expenses 157,528.37 -0.41% fixed assets in the current No periodV. Analysis of Assets and Liabilities Unit: RMB This reporting period end Same period last year Explanation of Increase/Decrea Proportion in Proportion in significant Amount Amount se (%) total assets total assets changesMonetarycapitalAccountsreceivableInventory 458,315,899.30 21.80% 381,905,920.98 17.61% 4.19%InvestmentpropertyLong-termequity 239,987.08 0.01% 441,892.08 0.02% -0.01%investmentFixed assets 893,074,353.16 42.48% 927,820,225.94 42.79% -0.31%Construction inprogressShort-termborrowingsContractualliabilitiesLong-termborrowings? Applicable □Not applicable Proportion Control Whether of overseas Specific measures to there is any Reasons of Operation Return on assets incontent of Asset size Location guarantee significant formation model assets the assets asset impairment Company’s security risk net assetsHABITAT ControllingINTERNA Vessel and - subsidiary 264,907,97 IndependenTIONAL Panama personnel 3,346,347.7 20.22% No incorporate 1.90 t operationsCORPORA insurance 7 d overseasTIONAFRICA Controlling 185,621,96 Independen Professiona - Ghana 14.17% NoSTAR subsidiary 3.33 t operations l 14,052,507. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.FISHERIE incorporate manageme 01S d overseas nt teamLIMITED stationed overseas and vessel and personnel insurance Professiona l managemeZHONG nt teamGHA Controlling stationed -FOODS subsidiary 113,453,65 Independen Ghana overseas 3,721,520.8 8.66% NoCOMPAN incorporate 8.33 t operations and vessel 8Y d overseas andLIMITED personnel insurance□Applicable ? Not applicable Item Book value Type of restriction Monetary funds 7,800,000.00 Guarantee deposits for notes and letters of guarantee Fixed assets 425,373,763.77 Mortgage loans Intangible assets 47,552,152.82 Mortgage loans Construction in progress 220,235,411.15 Mortgage loans Total 700,961,327.74VI. Investment Analysis? Applicable □Not applicable Investment amount for the Reporting Investment amount for the same period Changes (%) Period (RMB) in the previous year (RMB)□Applicable ? Not applicable Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.? Applicable □Not applicable Unit: RMB Reasons for Total failure actual Total to reach Whether Industri Investm investm income the it is an es ent ent Expecte realized Investm planned Disclosu DisclosuProject investm involved amount amount Fund Project d as of the ent progress re date re index name ent in in the for the as at the source progress investm end of method and (if any) (if any) fixed investm Reportin end of ent the realize assets ent g Period the Reportin the Reportin g Period expecte g Period d income Proces sing Long- NotTuna and term Self- 38,837 yet putTradin trading 1,297, borrow 65.67 constr Yes ,263.2 intog of 730.86 ings, % uction 5 operatiCenter aquatic Owner" on produc s funds ts Cold Long- chain NotNo.5 term Self- wareh 15,570 163,19 yet putCold borrow 90.57 constr Yes ousing ,299.2 9,862. intoStorag ings, % uction and 3 06 operatie Owner" logisti on s funds csTotal -- -- -- ,030.0 7,125. -- -- 0.00 0.00 -- -- --(1) Securities investment□Applicable ? Not applicableThe Company did not have securities investments during the Reporting Period.(2) Derivative investment□Applicable ? Not applicableThe Company did not have derivative investments during the Reporting Period.□Applicable ? Not applicableThe Company had no use of raised funds during the Reporting Period. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.VII. Sale of Significant Assets and Equity□Applicable ? Not applicableThe Company did not sell any significant assets during the Reporting Period.□Applicable ? Not applicableVIII. Analysis of Key Shareholding Companies? Applicable □Not applicableKey subsidiaries and shareholding companies affecting the Company’s net profits by more than 10% Unit: RMB Company Company Main Registered Operating Operating Total assets Net assets Net profits name type business capital revenue profitsShandongZhongluOceanic Food 104,322,30 502,247,29 390,196,56 237,557,46 12,085,690. 11,133,239. Subsidiary(Yantai) processing 0.00 4.51 9.40 9.65 30 30Food Co.,Ltd.HABITATINTERNA - - Refrigerate 12,476,145. 264,907,97 231,694,71 47,675,946.TIONAL Subsidiary 3,346,347.7 3,346,347.7 d transport 60 1.90 6.88 32CORPORA 7 7TIONShandongZhonglu - -Haiyan Long range 221,617,34 537,995,67 370,443,02 101,326,36 Subsidiary 13,818,446. 13,906,876.Oceanic fishing 9.00 1.70 8.75 2.89FisheriesCo., Ltd.Acquisition and disposal of subsidiaries during the Reporting Period□Applicable ? Not applicableInformation of key shareholding companiesShandong Zhonglu Oceanic (Yantai) Food Co., Ltd.: Operating profits for the Reporting Period were RMB12,085,690.30, upwith the same period last year.HABITAT INTERNATIONAL CORPORATION: Operating profits for the Reporting Period were RMB-3,346,347.77, downwhich led to a year-on-year decline in income and profits.Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd.: Operating profits for the Reporting Period were RMB-13,818,446.35, upproduction, lower unit costs, and higher gross profit. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.IX.Structured Entities Controlled by the Company□Applicable ? Not applicableX.Risks facing the Company and countermeasuresdecreases in fishing resources will have a greater impact on the Company"s profits. Cyclic changes, climates, hydrologicalconditions, and other relevant conditions are all likely to cause fluctuations in fishing resources. Countermeasures: develop newfishing grounds, perform scientific dispatching, upgrade fishing production equipment, and gradually update production vessels;make scientific and reasonable arrangements for logistics support for vessel maintenance, equipment repair, supplies, baits, spareparts, and personnel, and ensure the ship departure rate.international oil prices remain high and volatile, leading to a surge in fuel costs and consequently compressing profit margins.Countermeasures: rationally plan fuel procurement timing and quantities, conduct inquiries and comparisons with suppliers inadvance to minimize fuel procurement costs; flexibly adjust production plans, consider periodic vessel floating or docking in portsto reduce fuel consumption and cost expenditures.revenues settled in foreign currencies, and the exchange rate risk faced by the aquatic product processing business remainssignificant. Countermeasures: scientifically forecast exchange rate trends, manage exchange rate risk in accordance with theprinciple of exchange rate neutrality, and take corresponding measures against possible changes in exchange rates to reduce oravoid losses caused by exchange rate fluctuations.drive the replacement of old vessels and optimize asset allocation to prevent potential safety hazards.XI. Development and Implementation of Market Value Management System and ValuationEnhancement PlanHas the Company developed a market value management system??Yes □NoHas the Company disclosed a valuation enhancement plan??Yes □NoAccording to calculations, from January 1, 2024, to December 31, 2024, the Company"s stock experienced low-level fluctuations,with the closing price of each trading day remaining below the audited net asset value per share for 12 consecutive months, fallingunder the circumstances that require the formulation of a valuation enhancement plan. The 23rd Meeting (extraordinary session) ofthe Eighth Board of Directors reviewed and approved the Valuation Enhancement Plan. The Company will focus on enhancingoperational business, building corporate image, strengthening shareholder returns, seeking restructuring opportunities, andestablishing long-term incentive mechanisms to strive for an increase in the Company"s investment value. For details, please referto the Valuation Enhancement Plan of Shandong Zhonglu Oceanic Fisheries Co., Ltd. (Announcement No. 2025-05) published onthe website of CNINFO www.cninfo.com.cn on March 1, 2025.The Company"s Market Value Management System was first reviewed and approved at the 23rd Meeting (extraordinary session)of the Eighth Board of Directors and was revised and approved at the 2nd Meeting of the Ninth Board of Directors. For details, Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.please refer to the Market Value Management System of Shandong Zhonglu Oceanic Fisheries Co., Ltd. published on the websiteof CNINFO www.cninfo.com.cn on March 1, 2025, and April 24, 2026, respectively.XII. Implementation of the “Increasing Both Quality and Profit” Action PlanWhether the Company disclosed an announcement on the “Increasing Both Quality and Profit” action plan.□Yes ?No Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Section IV Corporate Governance, Environmental, and SocialI. Information on the directors and senior management of the company? Applicable □Not applicable Name Position Type Date ReasonZhu Wei Independent Director Elected January 15, 2026 Re-electionLi Yisheng Employee Director Elected January 15, 2026 Re-electionII. The Company"s profit distribution and capitalization of capital reserves□Applicable ? Not applicableThe Company plans not to distribute cash dividends or bonus shares, or increase share capital from public reserves.III. Implementation of the Company"s equity incentive plan, employee stock ownership planor other employee incentive measures□Applicable ? Not applicableDuring the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employeeincentive measures and their implementation.IV. Environmental Information Disclosure StatusIs the listed company and its major subsidiaries included in the list of enterprises subject to mandatory environmental informationdisclosure pursuant to the law?□Yes ?NoV. Social Responsibility (1) Serving rural revitalization Proactively serving overall economic and social development, the Company selected one cadre to participate in theprovincial-level "First Secretary" task force, actively contributing to serving rural revitalization and driving high-quality economicand social development. (2) Fulfilling overseas social responsibilities Zhonglu Ghana Representative Office actively participated in the "Back to School" charity project of the Tema EastEducation Foundation in Ghana and held two charity education donation events to support the development of local education. (3) Practicing humanistic care The Company regularly carried out activities such as visits and condolences to frontline crew members, recuperation and restfor frontline workers, assistance to needy employees, and vocational skills training. It also implemented care measures such ashealth check-ups for employees and honorary retirement ceremonies, effectively making employees feel the care and warmth ofthe enterprise. (4) Carrying out volunteer activities The Company organized staff to enter communities and participate in volunteer services such as voluntary blood donation,charitable donations, civilization advocacy, and community cleaning, contributing to the advancement of a spiritual civilization inthe new era. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Section V Important MattersI. Commitments fulfilled by the Company’s actual controller, shareholders, related parties,acquirers, the Company and other relevant parties, and commitments that commitmentsthat have not been fully fulfilled as of the end of the reporting period□Applicable ? Not applicableThere are no commitments made by the actual controllers, shareholders, related parties, acquirers, and other related parties of thecompany during the reporting period that have been fulfilled or have not been fulfilled by the end of the reporting period.II. Non-operating capital occupation of listed companies by controlling shareholders andother related parties□Applicable ? Not applicableDuring the reporting period of the Company, there was no non-operating capital occupation of listed companies by controllingshareholders and other related parties.III. Illegal external guarantees□Applicable ? Not applicableThe Company had no external guarantees in violation of regulations.IV. Appointment and dismissal of accounting firmsHas the semi-annual financial report been audited□Yes ?NoThe company"s semi-annual report has not been audited.V. Explanation of the board of directors on the “non-standard audit report” of theaccounting firm for the reporting period□Applicable ? Not applicableVI. Explanation by the board of directors on the relevant situation of the "non-standardaudit report" of the previous year□Applicable ? Not applicableVII. Matters related to bankruptcy and reorganization□Applicable ? Not applicableDuring the reporting period, there were no matters related to bankruptcy and reorganization of the Company. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.VIII. Litigation mattersMajor litigation and arbitration matters□Applicable ? Not applicableDuring this reporting period, the company has no major litigation or arbitration matters.Other litigation matters□Applicable ? Not applicableIX. Punishment and rectification□Applicable ? Not applicableThe Company did not receive any punishment or request for rectifications during the Reporting Period.X. Integrity status of the Company and its controlling shareholders and actual controllers□ Applicable ?Not applicableXI. Significant connected transactions□Applicable ? Not applicableDuring the reporting period of the Company, there was no connected transaction related to daily operation.□Applicable ? Not applicableDuring the reporting period, there was no connected transaction involving asset or equity acquisition or sale.□Applicable ? Not applicableDuring the reporting period, there was no connected transaction involving joint external investment.?Applicable □ Not applicableWhether there are non-operating related creditor"s rights and debts□Yes ? NoDuring the reporting period, the company had no related creditor"s rights and debts.□Applicable ? Not applicableThere is no deposit, loan, credit or other financial business between the Company and associated financial company or the relatedparty. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.□Applicable ? Not applicableThere is no deposit, loan, credit or other financial business between the financial company controlled by the Company and relatedparties.□Applicable ? Not applicableThere were no other significant related party transactions during the reporting period of the company.XII. Significant contracts and their performance(1) Trusteeship? Applicable □Not applicableExplanation on trusteeshipApril 2022 , the Company has been entrusted by Shandong State-owned Assets Investment Holding Co., Ltd. to manage itssubsidiary Zhongtai Xincheng Asset Management Co., Ltd. (hereinafter referred to as "Zhongtai Xincheng"); as the shareholderproxy of Zhongtai Xincheng, the Company shall comply with relevant provisions of the entrusted management agreement.Zhongtai Xincheng is not included in the scope of the Company"s consolidated statements.Projects that bring profit or loss to the Company amounting to more than 10% of the Company"s total profit in the reporting period□Applicable ? Not applicableDuring the reporting period of the Company, there was no trusteeship project which brings profit or loss for the Companyamounting to more than 10% of the total profit of the Company.(2) Contracting status□Applicable ? Not applicableThere was no contracting in the reporting period of the Company.(3) Lease situation□Applicable ? Not applicableThere was no lease in the reporting period of the Company.? Applicable □Not applicable Unit: RMB’0000 Guarantees provided by the Company and its subsidiaries (excluding guarantees for subsidiaries)Guarant Announc Actual Actual Type of Counter- Whether Guarante Collatera Guarante Whether ee ement date of guarante guarante guarante for e quota l (if any) e period fulfilledrecipient date of occurren e e e (if any) related Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. guarante ce amount party e quota Guarantees provided by the Company for its subsidiaries Announc Actual Actual WhetherGuarant ement Type of Counter- Guarante date of guarante Collatera Guarante Whether for ee date of guarante guarante e quota occurren e l (if any) e period fulfilled relatedrecipient guarante e e (if any) ce amount party e quotaZhongluOceanic(Qingdao) January Joint andIndustria Decemb 2, 2025 January 12,029.1 severall er 25, 24,000 to No NoInvestm 2024 January eent and 1, 2045DevelopmentCo., Ltd. Total actualApproval of total guarantee amountguarantee quota for provided tosubsidiaries during 2,290.75 subsidiaries duringthe reporting period the reporting period(B1) (B2)Total approved Total balance ofguarantee quota for guarantee providedsubsidiaries at the 24,000 to subsidiaries at the 12,029.17end of the reporting end of the reportingperiod (B3) period (B4) Guarantees provided by subsidiaries to other subsidiaries Announc Actual Actual WhetherGuarant ement Type of Counter- Guarante date of guarante Collatera Guarante Whether for ee date of guarante guarante e quota occurren e l (if any) e period fulfilled relatedrecipient guarante e e (if any) ce amount party e quota Total guarantees of the Company (total of the first three items)Approval of total Total actualguarantee quota guarantee providedduring the reporting during the reportingperiod (A1+B1+C1) period (A2+B2+C2)Total approved Total balance ofguarantee quota at guarantee at the endthe end of the 24,000 12,029.17 of the reportingreporting period period (A4+B4+C4)(A3+B3+C3)Percentage of total guarantees (i.e.,A4+B4+C4) in the Company’s net assetsAmong which:Balance of guarantees provided toshareholders, actual controllers, and their 0related parties (D)Balance of debt guarantees provided directly 0 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.or indirectly to guaranteed parties with anasset-liability ratio exceeding 70% (E)Portion of the total guarantee amount thatexceeds 50% of net assets (F)Total of the above three guarantee amounts(D+E+F)Description of any guarantees during thereporting period where contingent liabilitieshave arisen or there is evidence suggesting Nonepossible joint liability fulfillment forunexpired guarantee contracts (if any)Explanation of any external guaranteesprovided in violation of prescribed Noneprocedures (if any)□Applicable ? Not applicableThere was no entrusted wealth management in the reporting period of the Company.□Applicable ? Not applicableThere were no other major contracts in the reporting period of the Company.XIII. Registration Form for Surveys, Communications, Interviews, and Other ActivitiesConducted During the Reporting Period?Applicable □ Not applicable Main topics Index to basic Time of Place of Method of Type of subject Subject discussed and details of the engagement engagement engagement engaged engaged materials survey provided Information about the Company"sJanuary 12, Phone Individual Online Individual production and None operations; no materials were provided Information about the Company"sJanuary 14, Phone Individual Online Individual production and None operations; no materials were provided Information about theJanuary 26, Phone Individual Online Individual Company"s None production and operations; no Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. materials were provided Information about the Company"sJanuary 30, Phone Individual Online Individual production and None operations; no materials were provided Information about the Company"s Phone IndividualMay 6, 2026 Online Individual production and None communication investor operations; no materials were provided Information about the Company"s Phone IndividualJune 8, 2026 Online Individual production and None communication investor operations; no materials were provided Information about the Company"s Phone IndividualJune 29, 2026 Online Individual production and None communication investor operations; no materials were providedXIV. Notes to other major items□Applicable ? Not applicableDuring the Reporting Period, the Company did not have other significant events to explain.XV. Significant events of the Company"s subsidiaries□Applicable ? Not applicable Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Section VI Changes in Shares and Information on ShareholdersI. Changes in shares Unit: share Before this change Increase or decrease in this change (+, -) After this change Provident Issuance of Bonus Quantity Proportion fund Other Subtotal Quantity Proportion new shares shares transferI.Unlistedtradable 48.13% 48.13%sharesPromoter 48.13% 48.13%shares Ofwhich:shares 48.04% 48.04%held bythe state Shares held bydomestic 260,000 0.09% 260,000 0.09%legalpersons Shares held byforeignlegalpersons OtherRaisinglegalpersonsharesInternalstaffsharesPreferredstock orotherII. Listedtradable 51.87% 51.87%shares Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.ordinarysharesForeignshares 51.87% 51.87%listed inChinaForeignshareslistedoverseasOthersIII. Totalnumber of 100.00% 100.00%sharesReason for Share Change□Applicable ? Not applicableApproval status of shareholding changes□Applicable ? Not applicableTransfer status of share changes□Applicable ? Not applicableImplementation progress of share repurchase□Applicable ? Not applicableImplementation progress of reducing share repurchase through centralized bidding□Applicable ? Not applicableThe impact of shareholding changes on financial indicators such as basic earnings per share, diluted earnings per share, and netassets per share attributable to ordinary shareholders of the Company in the last year and the latest period□Applicable ? Not applicableOther content that the Company deems necessary or required by securities regulators to disclose□Applicable ? Not applicable□Applicable ? Not applicableII. Securities Issuance and Listing□Applicable ? Not applicableIII. Number of shareholders and shareholding status of the Company Unit: shareTotal number of ordinary Total number of preferredshareholders at the end of shareholders with voting Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.the reporting period rights restored at the end of the reporting period (if any) (see note 8) Shareholding status of shareholders holding 5% or more of shares or top 10 shareholders (excluding shares lent through securities lending) Number of Increase/de Pledge, Mark or Frozen shares held crease Number of Situation Nature of Number ofShareholde Shareholdi at the end changes non- shareholder tradable r name ng ratio of the during the tradable Share s shares held Quantity reporting reporting shares held Status period periodShandongState-ownedAssets State-owned 125,731,32 125,731,32 NotInvestment legal person 0 0 applicableHolding Co.,Ltd. Domestic NotZhu Shuzhen 2.17% 5,785,504 161057 5,785,504 natural person applicableChen Foreign NotTianming natural person applicable Domestic NotZhan Hanbin 2.11% 5,625,200 42869 5,625,200 natural person applicable Domestic NotCai Yujiu 1.75% 4,669,000 4,669,000 natural person applicable Domestic NotChen Cirou 1.53% 4,065,600 350500 4,065,600 natural person applicableChinaNational State-owned NotHeavy Duty 0.73% 1,950,000 1,950,000 legal person applicableTruck GroupCo., Ltd. Domestic NotLin Mingyu 0.47% 1,240,000 -124201 1,240,000 natural person applicableChen Domestic NotZhongming natural person applicable Foreign NotHuang Jiayi 0.39% 1,033,987 1,033,987 natural person applicableCircumstances wherestrategic investors orgeneral legal personsbecame top 10 Noneshareholders due to newshare allotments (if any)(See Note 3)Explanation on the related The Company is not aware of whether any association exists between them or whether theyrelationship or concerted constitute persons acting in concert as defined in the Administration Measures on Takeover of Listedaction of aforesaid Companies.shareholdersExplanation of the above-mentioned shareholdersinvolved in Noneentrusted/entrusted votingrights and waiver ofvoting rights Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Special instructions forrepurchase accountsamong the top 10 Noneshareholders (if any) (seeNote 11) Shareholding details of top 10 tradable share holders (excluding shares lent through securities and executive lock-up shares) Type of shares Shareholder name Number of tradable shares held at the end of the reporting period Type of Quantity shares DomesticZhu Shuzhen 5,785,504 listed foreign 5,785,504 shares DomesticChen Tianming 5,760,427 listed foreign 5,760,427 shares DomesticZhan Hanbin 5,625,200 listed foreign 5,625,200 shares DomesticCai Yujiu 4,669,000 listed foreign 4,669,000 shares DomesticChen Cirou 4,065,600 listed foreign 4,065,600 shares DomesticLin Mingyu 1,240,000 listed foreign 1,240,000 shares DomesticChen Zhongming 1,080,100 listed foreign 1,080,100 shares DomesticHuang Jiayi 1,033,987 listed foreign 1,033,987 shares DomesticLiu Xinghui 854,211 listed foreign 854,211 shares DomesticFang Xiaozhou 828,343 listed foreign 828,343 sharesExplanation ofassociations or acting inconcert among the top 10shareholders with The Company is not aware of whether the aforesaid shareholders have any associated relationship orunrestricted tradable are persons acting in concert as stipulated in the Administration Measures on Takeover of Listedshares, and between the Companiess.top 10 shareholders withunrestricted tradableshares and the top 10shareholdersNote for the top 10ordinary shareholdersparticipating in margin Nonetrading (if any) (see NoteParticipation in the lending of shares through securities lending by shareholders holding more than 5% of the shares, the top 10shareholders, and the top 10 holders of unlimited circulating shares Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.□Applicable ? Not applicableChange from the previous period resulting from securities lending/returning by the top 10 shareholders and the top 10 holders ofunlimited circulating shares□Applicable ? Not applicableWhether the Company’s top 10 shareholders of common shares and top 10 shareholders of common shares not subject to salesrestrictions conducted agreed repurchase transactions during the reporting period□Yes ?NoThe Company"s top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales restrictionsdid not conduct agreed repurchase transactions during the reporting period.IV. Changes in Shareholding of Directors and Senior Management□Applicable ? Not applicableThere has been no change in shareholding situation of the company"s directors and senior management personnel during thereporting period, as detailed in the 2025 annual report.V. Changes in controlling shareholders or actual controllersHas the company previously disclosed that the actual controller is planning a change of control but has not yet completed it? If so,please explain the progress of the change of control.□Applicable ? Not applicableChanges in controlling shareholders during the reporting period□Applicable ? Not applicableThere has been no change in the controlling shareholder of the company during the reporting period.Changes in actual controller during the reporting period□Applicable ? Not applicableThere has been no change in the actual controller of the company during the reporting period.VI. Preferred Shares□Applicable ? Not applicableDuring the reporting period, the Company had no preferred shares. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Section VII Bonds□Applicable ? Not applicable Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Section VIII Financial ReportI. Audit ReportHas the semi-annual report been audited□Yes ?NoThe company"s semi-annual financial report has not been audited.II. Financial StatementsThe monetary unit of the financial statements in the financial notes is: RMBPrepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd. June 30, 2026 Unit: RMB Item Closing balance Opening balanceCurrent assets: Monetary funds 233,352,220.34 313,096,173.70 Settlement provisions Lending funds Trading financial assets Derivative financial assets Notes receivable Accounts receivable 42,660,126.67 77,973,714.62 Accounts receivable financing Prepayments 23,460,418.74 17,625,072.87 Premium receivable Accounts receivable reinsurance Reinsurance contract reservereceivable Other receivables 89,554,044.25 105,905,380.86 Including: Interest receivable Dividends receivable Buying back the sale of financialassets Inventory 458,315,899.30 381,905,920.98 Including: data resources Contract assets Assets held for sale Non-current assets maturing withinone year Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Other current assets 20,300,693.58 28,152,443.26Total current assets: 867,643,402.88 924,658,706.29Non-current assets: Issuance of loans and advances Debt investment Other debt investments Long-term receivables Long-term equity investment 239,987.08 441,892.08 Other equity instrument investments Other non-current financial assets Investment real estate 24,141,587.69 24,804,626.03 Fixed assets 893,074,353.16 927,820,225.94 Construction in progress 235,979,273.52 205,135,249.27 Productive biological assets Oil and gas assets Right of use assets Intangible assets 57,163,623.38 57,909,522.26 Including: data resources Development expenditure Including: data resources Goodwill Long-term deferred expenses 4,483,445.13 2,575,291.62 Deferred tax assets 1,145,493.06 1,238,499.80 Other non-current assets 18,286,457.24 23,629,081.65Total non-current assets 1,234,514,220.26 1,243,554,388.65Total assets 2,102,157,623.14 2,168,213,094.94Current liabilities: Short-term loans 16,010,400.00 16,022,933.34 Borrowing from the Central Bank Borrowing funds Trading financial liabilities Derivative financial liabilities Notes payable 15,000,000.00 56,979,768.40 Accounts payable 73,449,328.93 82,543,681.42 Advance payment 1,319,438.37 1,201,097.79 Contract liabilities 58,602,167.88 8,866,554.08 Financial assets sold for repurchase Deposit taking and interbank deposits Acting trading securities Acting underwriting securities Employee compensation payable 46,159,422.61 77,123,782.16 Taxes and fees payable 5,936,743.42 8,704,199.41 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Other payables 28,210,173.38 24,571,935.67 Including: Interest payable Dividends payable 5,234,835.31 5,234,835.31 Handling fees and commissionspayable Accounts payable reinsurance Held for sale liabilities Non-current liabilities maturing withinone year Other current liabilities 11,770.97 19,248.74Total current liabilities 262,229,278.89 292,713,034.34Non-current liabilities: Insurance contract reserves Long-term loans 475,177,847.78 461,379,416.23 Bonds payable Including: Preferred stock Perpetual bonds Lease liabilities Long-term accounts payable Long-term employee compensationpayable Estimated liabilities Deferred income 51,796,291.97 53,112,953.91 Deferred tax liability 2,100,902.90 2,176,093.44 Other non-current liabilitiesTotal non-current liabilities 529,560,107.39 517,161,117.47Total liabilities 791,789,386.28 809,874,151.81Owner"s equity: Capital stock 266,071,320.00 266,071,320.00 Other equity instruments Including: Preferred stock Perpetual bonds Capital reserve 295,620,272.02 295,620,272.02 Less: Treasury stock Other comprehensive income -13,331,235.02 -6,329,745.36 Special reserves 136,001.20 19,038.84 Surplus reserves 21,908,064.19 21,908,064.19 General risk provision Undistributed profits 480,802,871.90 517,377,265.93Total owner"s equity attributable to theparent company Minority shareholders" equity 259,160,942.57 263,672,727.51 Total owner"s equity 1,310,368,236.86 1,358,338,943.13Total liabilities and owner"s equity 2,102,157,623.14 2,168,213,094.94Legal representative: Wang Huan, Person in charge of accounting work: Fu Chuanhai, Person in charge of accounting agency: LeiLixin Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Unit: RMB Item Closing balance Opening balanceCurrent assets: Monetary funds 120,958,954.50 74,170,229.10 Trading financial assets Derivative financial assets Notes receivable Accounts receivable 2,355,971.27 6,772,591.41 Accounts receivable financing Prepayments 10,131,903.10 10,971,776.11 Other receivables 165,825,490.33 212,781,089.97 Including: Interest receivable Dividends receivable 26,199,905.76 Inventory 94,603,844.67 76,451,519.66 Including: data resources Contract assets Assets held for sale Non-current assets maturing withinone year Other current assets 1,342,345.94 1,329,559.32Total current assets 395,218,509.81 382,476,765.57Non-current assets: Debt investment Other debt investments Long-term receivables Long-term equity investment 328,189,455.23 328,189,455.23 Other equity instrument investments Other non-current financial assets Investment real estate 24,141,587.69 24,804,626.03 Fixed assets 453,313,395.92 469,077,286.57 Construction in progress 3,099,092.79 Productive biological assets Oil and gas assets Right of use assets Intangible assets Including: data resources Development expenditure Including: data resources Goodwill Long-term deferred expenses 1,445,436.75 1,545,122.07 Deferred tax assets Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Other non-current assetsTotal non-current asset 810,188,968.38 823,616,489.90Total assets 1,205,407,478.19 1,206,093,255.47Current liabilities: Short-term loans Trading financial liabilities Derivative financial liabilities Notes payable Accounts payable 12,882,522.61 16,261,029.71 Advance receipts 1,319,438.37 1,201,097.79 Contract liabilities 41,081,765.30 2,520,624.96 Employee compensation payable 14,967,714.18 24,030,505.61 Taxes and fees payable 382,564.43 1,028,651.33 Other payables 195,553,202.82 178,191,959.02 Including: Interest payable Dividends payable Held for sale liabilities Non-current liabilities maturing withinone year Other current liabilitiesTotal current liabilities 283,717,041.04 239,913,701.75Non-current liabilities: Long-term loans 354,790,914.07 363,995,237.04 Bonds payable Including: Preferred stock Perpetual bonds Lease liabilities Long-term accounts payable Long-term employee compensationpayable Estimated liabilities Deferred income 39,528,539.83 40,282,403.35 Deferred tax liability Other non-current liabilitiesTotal non-current liabilities 394,748,175.83 404,706,362.32Total liabilities 678,465,216.87 644,620,064.07Owner"s equity: Capital stock 266,071,320.00 266,071,320.00 Other equity instruments Including: Preferred stock Perpetual bonds Capital reserve 279,115,900.17 279,115,900.17 Less: Treasury stock Other comprehensive income Special reserve Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Surplus reserves 19,184,672.34 19,184,672.34 Undistributed profits -37,429,631.19 -2,898,701.11Total owner"s equity 526,942,261.32 561,473,191.40Total liabilities and owner"s equity 1,205,407,478.19 1,206,093,255.47 Unit: RMB Item Half year of 2026 Half year of 2025I. Total operating income 410,581,705.72 677,380,077.49 Including: Operating income 410,581,705.72 677,380,077.49 Interest income Earned premium Handling fee andcommission incomeII. Total operating costs 452,600,344.15 694,829,251.66 Including: Operating costs 403,248,048.82 657,100,642.65 Interest expenses Handling fees and commissionexpenses Surrender deposit Net compensation expenses Net amount of insuranceliability reserve withdrawn Expenditures dividend policy Reinsurance expenses Taxes and surcharges 1,467,723.93 1,762,684.52 Sales expenses 1,892,976.36 1,971,307.26 Administrative expenses 28,370,121.32 28,243,483.54 R&D expenses 1,366,353.02 1,856,396.41 Financial expenses 16,255,120.70 3,894,737.28 Including: Interest expenses 4,542,753.58 5,583,036.73 Interest income 549,308.27 655,252.31Plus: Other income 1,991,066.10 1,480,732.47 Investment income (loss , using -291,046.67 -231,502.46"-") Including: Investmentincome from associates and joint -201,905.00 -231,502.46ventures Income fromderecognition of financial assetsmeasured at amortized costExchange gains (losses, using "-") Net exposure hedging income(loss, using "-") Income from changes in fair Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.value (loss , using "-") Credit impairment loss (loss ,using "-") Asset impairment loss (loss , -2,039,274.87 -3,604,352.83using "-") Asset disposal income (loss , -12,608.53using "-")III. Operating profit (loss , using "-") -38,079,532.16 -19,937,906.21Plus: Non-operating income 220.00Less: Non-operating expenses 157,528.37 18,503.26IV. Total profit (total loss, using "-") -38,237,060.53 -19,956,189.47Less: Income tax expenses 966,105.34 1,065,757.84V. Net profit (net loss, using "-") -39,203,165.87 -21,021,947.31(I) Classified by business continuity -39,203,165.87 -21,021,947.31(net loss , using "-")operations (net loss , using "-")(II) Classification by ownershipof the parent company (net loss, using "- -36,574,394.03 -13,337,046.26") -2,628,771.84 -7,684,901.05(net loss, using "-")VI. After-tax net amount of other -8,884,502.76 -1,310,030.90comprehensive income After-tax net amount of othercomprehensive income attributable to the -7,001,489.66 -1,048,590.51owner of the parent company(I) Other comprehensive income thatcannot be reclassified into profit or lossbenefit planscannot be transferred to gain or lossunder the equity methodinstrument investmentsown credit risk(II) Other comprehensive income to be -7,001,489.66 -1,048,590.51reclassified into profit or lossbe transferred to profit or loss under theequity methodinvestmentsother comprehensive incomedebt investments Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.currency financial statements After-tax net amount of othercomprehensive income attributable to -1,883,013.10 -261,440.39minority shareholdersVII. Total comprehensive income -48,087,668.63 -22,331,978.21 Total comprehensive incomeattributable to the owners of the parent -43,575,883.69 -14,385,636.77company Total comprehensive income -4,511,784.94 -7,946,341.44attributable to minority shareholdersVIII. Earnings per share: (I) Basic earnings per share -0.1375 -0.0501 (II) Diluted earnings per share -0.1375 -0.0501Legal representative: Wang Huan, Person in charge of accounting work: Fu Chuanhai, Person in charge of accounting agency: LeiLixin Unit: RMB Item Half year of 2026 Half year of 2025Less: Operating costs 75,606,062.64 150,269,922.87 Taxes and surcharges 658,951.68 722,163.95 Sales expenses 258,330.60 123,937.48 Administrative expenses 14,674,481.72 13,256,539.76 R&D expenses 264,416.64 Financial expenses 9,564,108.63 8,485,568.70 Including: Interest expenses 6,001,788.31 6,651,961.74 Interest income 264,345.16 295,898.97 Plus: Other income 1,321,375.66 783,919.99Investment income (loss , using "-") Including: Investment incomefrom associates and joint venturesIncome from derecognition of financialassets measured at amortized cost (loss ,using "-") Net exposure hedging income(loss , using "-") Income from changes in fairvalue (loss , using "-") Credit impairment loss (loss ,using "-") Asset impairment loss (loss ,using "-") Asset disposal income (loss ,using "-")II. Operating profit (loss , using "-") -34,530,165.90 -20,653,658.64 Plus: Non-operating income 220.00 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Less: Non-operating expenses 764.18III. Total profit (total loss , using "-") -34,530,930.08 -20,653,438.64 Less: Income tax expensesIV. Net profit (net loss , using "-") -34,530,930.08 -20,653,438.64 (I) Net profit from continuing -34,530,930.08 -20,653,438.64operations (net loss , using "-") (2) Net profit from discontinuingoperations (net loss, using "-")V.After-tax net amount of othercomprehensive income(I) Other comprehensive income thatcannot be reclassified into profit or lossbenefit plansthat cannot be transferred to gain or lossunder the equity methodequity instrument investmentsenterprise"s own credit risk (II) Other comprehensive income tobe reclassified into profit or lossthat can be transferred to profit or lossunder the equity methodcredit investmentsinto other comprehensive incomeof other debt investmentsforeign currency financial statementsVI. Total comprehensive income -34,530,930.08 -20,653,438.64VII. Earnings per share: (I) Basic earnings per share (II) Diluted earnings per share Unit: RMB Item Half year of 2026 Half year of 2025I. Cash flow generated from operatingactivities: Cash received from selling goods andproviding services Net increase in customer deposits andinterbank deposits and loans Net increase in borrowings from theCentral Bank Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Net increase in borrowing funds fromother financial institutions Cash received from original insurancecontract premiums Net cash received from reinsurancebusiness Net increase in insured deposits andinvestments Cash received for interest, handlingfees, and commissions Net increase in borrowing funds Net increase in repurchase businessfunds Net cash received from proxy tradingof securities Received refunds of taxes 22,418,185.11 34,406,365.62 Received other cash related tooperating activitiesSubtotal of cash inflows from operatingactivities Cash paid for purchasing goods andreceiving services Net increase in customer loans andadvances Net increase in deposits with CentralBank and interbank funds Cash paid for compensation under theoriginal insurance contract Net increase in lending funds Cash paid for interest, handling fees,and commissions Cash paid for policy dividends Cash paid to and on behalf ofemployees Various taxes and fees paid 6,249,687.26 5,371,920.89 Other cash payments related tooperating activitiesSubtotal of cash outflows from operatingactivitiesNet cash flow generated from operating -31,864,804.21 82,605,264.02activitiesII. Cash flow generated from investmentactivities Cash received from investmentrecovery Cash received from obtaininginvestment income Net cash received from disposal offixed assets, intangible assets, and other 96,807.39 7,242.00long-term assets Net cash received from disposal ofsubsidiaries and other business units Received other cash related toinvestment activities Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Subtotal of cash inflows from investmentactivities Cash paid for the purchase andconstruction of fixed assets, intangible 30,880,732.65 73,143,426.28assets, and other long-term assets Cash paid for investment Net increase in pledged loans Net cash paid for acquiringsubsidiaries and other business units Other cash payments related toinvestment activitiesSubtotal of cash outflows frominvestment activitiesNet cash flow generated from investment -30,783,925.26 -73,136,184.28activitiesIII. Cash flow generated from financingactivities: Cash received from absorbinginvestments Including: Cash received fromsubsidiaries absorbing minorityshareholder investments Cash received from obtaining loans 23,000,000.00 67,291,702.81 Received other cash related tofinancing activitiesSubtotal of cash inflows from financingactivities Cash paid for debt repayment 8,289,916.67 36,689,916.67 Cash paid for distributing dividends,profits, or paying interest Including: Dividends and profits paidby subsidiaries to minority shareholders Other cash payments related tofinancing activitiesSubtotal of cash outflows from financingactivitiesNet cash flow generated from financingactivitiesIV. The impact of exchange rate changes -10,290,189.28 6,166,362.76on cash and cash equivalentsV. Net increase in cash and cash -58,754,069.16 38,150,559.41equivalents Plus: Opening balance of cash andcash equivalentsVI. Closing balance of cash and cashequivalents Unit: RMB Item Half year of 2026 Half year of 2025I. Cash flow generated from operatingactivities: Cash received from selling goods andproviding services Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Received refunds of taxes Received other cash related tooperating activitiesSubtotal of cash inflows from operatingactivities Cash paid for purchasing goods andreceiving services Cash paid to and on behalf ofemployees Various taxes and fees paid 808,572.35 903,122.81 Other cash payments related tooperating activitiesSubtotal of cash outflows from operatingactivitiesNet cash flow generated from operatingactivitiesII. Cash flow generated from investmentactivities: Cash received from investmentrecovery Cash received from obtaininginvestment income Net cash received from disposal offixed assets, intangible assets, and otherlong-term assets Net cash received from disposal ofsubsidiaries and other business units Received other cash related toinvestment activitiesSubtotal of cash inflows from investmentactivities Cash paid for the purchase andconstruction of fixed assets, intangibleassets, and other long-term assets Cash paid for investment Net cash paid for acquiringsubsidiaries and other business units Other cash payments related toinvestment activitiesSubtotal of cash outflows frominvestment activitiesNet cash flow generated from investmentactivitiesIII. Cash flow generated from financingactivities: Cash received from absorbinginvestments Cash received from obtaining loans Received other cash related tofinancing activitiesSubtotal of cash inflows from financingactivities Cash paid for debt repayment 8,289,916.67 6,689,916.67 Cash paid for distributing dividends,profits, or paying interest Other cash payments related tofinancing activities Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Subtotal of cash outflows from financingactivitiesNet cash flow generated from financing -12,562,710.52 -20,677,131.06activitiesIV. The impact of exchange rate changes -8,836.83 -69.64on cash and cash equivalentsV. Net increase in cash and cashequivalents Plus: Opening balance of cash andcash equivalentsVI. Closing balance of cash and cashequivalents Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Amount of current period Unit: RMB Half year of 2026 Minority Total Total owner"s equity attributable to the parent company sharehold owner"s er"s equity equity Item Other equity instruments Other Less: General Undistrib Capital Capital comprehe Special Surplus Preferred Perpetual Treasury risk uted Others Subtotal stock Others reserve nsive reserves reserves stock bonds stock provision profit income - 1,094,6 1,358,3I. Closing balance of 266,071 295,620 19,038. 21,908, 517,377 263,672previous year ,320.00 ,272.02 84 064.19 ,265.93 ,727.51 Plus: Changesin accountingpoliciesEarly errorcorrectionOthers - 1,094,6 1,358,3II. Opening balance 266,071 295,620 19,038. 21,908, 517,377 263,672of this year ,320.00 ,272.02 84 064.19 ,265.93 ,727.51III. Increase or - - - - -decrease in the 116,962current period .36(decrease , using "-")(I) Total - - - - -comprehensive 7,001,4 36,574, 43,575, 4,511,7 48,087,income 89.66 394.03 883.69 84.94 668.63(II) Capital investedand reduced byowners Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.invested by ownersby holders of otherequity instrumentsbased paymentsrecognized inowner"s equity(III) Profitdistributionsurplus reservesWithdrawal ofgeneral riskprovisionsowners (orshareholders)(IV) Internalcarryover of owner"sequityCapitalization ofcapital reserves intocapital (or capitalstock)converted intocapital (or capitalstock)to cover losses Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.changes in definedbenefit plans toretained earningscomprehensiveincome carriedforward to retainedearnings(V)Special reserves .36 .36 .36current period 26.94 26.94 26.94(VI) Others - 1,051,2 1,310,3IV. Closing balance 266,071 295,620 136,001 21,908, 480,802 259,160of the current period ,320.00 ,272.02 .20 064.19 ,871.90 ,942.57Amount of previous year Unit: RMB Half year of 2025 Total owner"s equity attributable to the parent company Other equity instruments Other Minority Total Item Less: General Undistrib Capital Capital comprehe Special Surplus sharehold owner"s Preferred Perpetual Treasury risk uted Others Subtotal stock reserve nsive reserves reserves er"s equity equity Others stock bonds stock provision profit income - 1,067,1 1,325,4I. Closing balance of 266,071 295,620 21,908, 483,904 258,277previous year ,320.00 ,272.02 064.19 ,313.48 ,578.10 .04 65 75Plus: Changes inaccounting policiesEarly error correction Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Others - 1,067,1 1,325,4II. Opening balance 266,071 295,620 21,908, 483,904 258,277of this year ,320.00 ,272.02 064.19 ,313.48 ,578.10 .04 65 75III. Increase or - - - - -decrease in the 327,504current period .96(decrease , using "-")(I) Total - - - - -comprehensive 1,048,5 13,337, 14,385, 7,946,3 22,331,income 90.51 046.26 636.77 41.44 978.21(II) Capital investedand reduced byownersinvested by ownersby holders of otherequity instrumentsbased paymentsrecognized inowner"s equityProfit distributionsurplus reservesWithdrawal ofgeneral riskprovisionsowners (orshareholders) Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(IV) Internalcarryover of owner"sequityCapitalization ofcapital reserves intocapital (or capitalstock)converted into capital(or capital stock)to cover losseschanges in definedbenefit plans toretained earningscomprehensiveincome carriedforward to retainedearnings(V)Special reserves .96 .96 .96current period 66.45 66.45 66.45 .49 .49 .49(VI) Others 0.00 0.00 - 1,053,1 1,303,4IV. Closing balance 266,071 295,620 327,504 21,908, 470,567 250,331of the current period ,320.00 ,272.02 .96 064.19 ,267.22 ,236.66 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Amount of current period Unit: RMB Half year of 2026 Other equity instruments Less: Other Total Total Item Capital Capital Special Surplus Undistributed Preferred Perpetual Treasury comprehensi Others owner"s stock Others reserve reserves reserves profit stock bonds stock ve income equityI. Closing balance of 266,071, 279,115,90 19,184,672 561,473,19previous year 320.00 0.17 .34 1.40 Plus: Changesin accountingpoliciesEarly error correction OthersII. Opening balance 266,071, 279,115,90 19,184,672 561,473,19of this year 320.00 0.17 .34 1.40III. Increase or - -decrease in thecurrent period .08 .08(decrease , using "-")(I) Total - -comprehensive 34,530,930 34,530,930income .08 .08(II) Capital investedand reduced byownersinvested by ownersby holders of otherequity instruments Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.based paymentsrecognized inowner"s equity(III)Profitdistributionsurplus reservesowners (orshareholders)(IV) Internalcarryover of owner"sequitycapital reserves intocapital (or sharecapital)converted into capital(or capital stock)to cover losseschanges in definedbenefit plans toretained earningscomprehensiveincome carriedforward to retainedearnings Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(V) Special reservecurrent period(VI) OthersIV. Closing balance 266,071, 279,115,90 19,184,672 526,942,26of the current period 320.00 0.17 .34 1.32 .19Amount of previous year Unit: RMB Half year of 2025 Other equity instruments Less: Other Total Total Item Capital Special Surplus Undistributed Capital stock Preferred Perpetual Treasury comprehensi Others owner"s Others reserve reserves reserves profit stock bonds stock ve income equityI. Closing balance of 266,071,32 279,115,90 19,184,672 545,336,41previous year 0.00 0.17 .34 2.97 .54Plus: Changes inaccounting policiesEarly error correctionOthersII. Opening balance 266,071,32 279,115,90 19,184,672 545,336,41of this year 0.00 0.17 .34 2.97 .54III. Increase or - -decrease in thecurrent period .64 .64(decrease , using "-")(I) Total - -comprehensive 20,653,438 20,653,438income .64 .64(II) Capital investedand reduced by Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.ownersinvested by ownersby holders of otherequity instrumentsbased paymentsrecognized inowner"s equity(III)Profitdistributionsurplus reservesowners (orshareholders)(IV) Internalcarryover of owner"sequitycapital reserves intocapital (or sharecapital)converted into capital(or capital stock)to cover losseschanges in definedbenefit plans to Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.retained earningscomprehensiveincome carriedforward to retainedearnings(V) Special reservecurrent period(VI) OthersIV. Closing balance 266,071,32 279,115,90 19,184,672 524,682,97of the current period 0.00 0.17 .34 4.33 .18 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.III. Basic Information of the Company Shandong Zhonglu Oceanic Fisheries Co., Ltd. (hereinafter referred to as “Company” or “the Company”) has a registeredcapital of RMB 266,071,300 and registered address at Unit 2501, Building 1, 31 Xianxialing Road, Laoshan District, Qingdao,Shandong. It is a company limited by shares that was incorporated by means of promotion by Shandong Provincial AquaticProducts Group Corporation as the main promoter on July 30, 1999 under the approval of the Shandong Commission for StructuralReforms with LTGZ [1999] No. 85. The Company was listed on the Shenzhen Stock Exchange on July 24, 2000, under theapproval of the China Securities Regulatory Commission with ZJFXZ [2000] No. 82 on June 26, 2000. The short stock name andstock code of the Company are “Zhonglu B” and “200992,” respectively. The Company’s organizational structure is as follows: Annual General Meeting, Board of Directors; General Manager’sOffice (CPC Committee’s Office), Chairman’s Office, Human Resource Department (Organization Department), FinancialManagement Department (Capital Operation Department), Corporate Development Department (Risk Control Department), AuditDepartment, Oceanic Management Department, Discipline Committee’s Office and Party-Mass Work Department. The Company’s main products: tuna and tuna products. The Company’s business scope: general business items: processing and sales of aquatic products; commodity imports andexports within the approved scope; the production and sales of machine ice; the manufacturing, installation, and maintenance ofrefrigeration equipment; freezing and cold storage; loading, unloading and handling services; property leases. Pre-licensedbusiness items: offshore and long range fishing. The Company’s parent company is Shandong State-owned Assets Investment Holding Co., Ltd. This financial report was approved for release according to the resolution of the Company’s Board of Directors dated AugustIV. T Basis for the preparation of the financial statements.The company takes continuing operation as the basis for preparing financial statements and takes the accrual basis asthe basis for bookkeeping. The company generally adopts the historical cost to measure the accounting elements, andadopts the replacement cost, the realizable net value, the present value and the fair value on the premise that thedetermined amount of the accounting elements can be obtained and be measured reliably.The company shall have the ability of going concern for at least 12 months from the end of this report, and have nomajor matters affecting the ability of going concern. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.V. Important accounting policies and accounting estimatesAccording to the actual characteristics of production and operation and the provisions of relevant accountingstandards for enterprises, the company has formulated several specific accounting policies and accounting estimatesfor transactions and matters such as revenue recognition, see Note IV and 27 "revenue" for details. For the statementof significant accounting judgments and estimates made by management team, please refer to Note IV, 34 "MajorAccounting judgments and Estimates".The fiscal year starts from January 1 to December 31 of the Gregorian calendar.The normal business cycle is the period from the company"s purchase of assets for processing to the realization ofcash or cash equivalents. The company takes 12 months as a business cycle and takes it as the liquidity standard ofassets and liabilities.RMB YuanThe preparation and disclosure of the financial statements follow the principle of importance. The matters disclosedin the notes to the financial statements involve the importance criteria and the importance criteria of the Company areas follows:Item Position disclosed in the notes to Importance criteria determination method and this Financial Statements selection basisOther profits Note VI, 42 1 million yuanImportant non-wholly owned subsidiary Notes IX, 1, and (2) Asset size greater than 100 million YuanImportant associate companies Notes IX, and 2 The net profit scale is greater than 5 million yuanImportant projects under construction Note VI, 11 10 million yuanEnterprise merger refers to the transaction or event in which two or more separate enterprises are merged to form areporting entity. Business merger is divided into enterprise merger under the same control and enterprise merger notunder the same control.(1) Enterprise merger under the same controlThe enterprises participating in the merger are subject to the final control of the same party or the same multipleparties before and after the merger, and the control is not temporary and is the enterprise merger under the samecontrol. For an enterprise merger under the same control, the party acquiring control over the other enterprisesparticipating in the merger on the merger date shall be the merger party, and the other enterprises participating in the Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.merger shall be the merged party. The merger date refers to the date on which the merged party actually obtains thecontrol right of the incorporated party.The assets and liabilities acquired by the consolidated party are measured at the book value of the consolidated partyat the merger date. The balance between the book value of the net assets acquired by the consolidated party (or thetotal book value of the issued shares) shall adjust the capital reserve (equity premium); if the capital reserve (equitypremium) is insufficient to offset, the retained earnings shall be adjusted.The merger party is the direct expenses incurred in the enterprise merger, which shall be recorded into the currentprofit and loss at the time of occurrence.(2) Enterprise merger not under the same controlIf the enterprise participating in the merger is not under the final control of the same party or the same multipleparties before and after the merger, it is the enterprise merger not under the same control. For an enterprise mergernot under the same control, the party who obtains the control right over the other enterprises participating in themerger on the purchase date shall be the acquirer, and the other enterprises participating in the merger shall be theacquiree. The date of purchase is the date on which the acquirer actually obtains control over the acquiree.For merger of enterprises not under the same control, the cost of consolidation includes the assets paid by theacquirer on the purchase date to acquire control over the acquiree, liabilities incurred or assumed by the acquirer andequity securities issued to acquire control of the acquiree at the purchase date. The cost of audit for the merger of theenterprise, legal services, evaluation and consulting intermediary fees and other management fees shall be recorded inthe current profit and losses. The transaction expense of equity or debt securities issued by the acquirer as thecombined consideration shall be included in the initial recognized amount of equity or debt securities. The contingentconsideration involved shall be included in the consolidated cost according to its fair value on the purchase date. Ifthere is new or further evidence of the existed situations of the purchase date within 12 months after it, theconsolidated goodwill shall be adjusted accordingly. The merger costs incurred by the acquirer and the identifiable netassets acquired in the merger should be measured at the fair value of the purchase date. The difference between themerger cost and the share of the fair value of the identifiable net assets of the purchased party on the purchase dateshall be recognized as goodwill. If the consolidated cost is less than the fair value of identifiable net assets of themerger, first of the fair value of the identifiable assets, liabilities and contingent liabilities and combined costmeasurement, review the combined cost is still less than the identifiable net assets of the merger, the differenceincluded in the current profit and loss.If the acquirer obtains the deductible temporary difference of the acquiree, and is not recognized on the purchase datebecause it does not meet the conditions of deferred income tax assets for recognition, if new or further informationconfirming the existence of relevant situations is obtained with in 12 months after the purchase date, the acquirer shallconfirm the deferred income tax assets and reduce the goodwill, if the goodwill is insufficient, the difference shall berecognized as the current profit and loss; Except for the above situation, the deferred income tax assets related to theenterprise merger shall be included in the current profit and loss.For business merger not under the same control achieved through multiple transactions step by step, it should bedetermined whether the multiple transactions belongs to "package deal" according to the Ministry of Finance on thenotice of the accounting standards interpretation no. 5 (accounting [2012] no. 19) and "accounting standards no. 33 —— consolidated financial statements" article 51 criteria about "package deal" (see Note Ⅳ .6, judging criteria of the Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.control and preparation of the consolidated financial statements), For "package transaction", refer to the previousparagraphs in this section for accounting treatment; For those not belong to "package transaction", distinguishindividual financial statements from consolidated financial statements in the accounting statement:In individual financial statements, the sum of the book value of the equity interest of the acquiree held prior to thepurchase date and the cost of new investment on the purchase date is taken as the initial investment cost of theinvestment. Where the equity interest of the acquiree held prior to the purchase date involves other comprehensiveincome, the other comprehensive income associated with the investment will be accounted for on the same basis as ifthe acquiree had disposed of the relevant asset or liability directly (i.e., With the exception of the corresponding shareof the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan by theacquiree under the equity method, the remainder is transferred to investment income for the period).In the consolidated financial statements, for the equity of the acquiree held prior to the purchase date, remeasure atthe fair value of the equity at the purchase date, the difference between the fair value and its book value shall beincluded in the current investment income; Where the equity of the acquiree held before the purchase date involvesother comprehensive income, the other comprehensive income shall be treated on the same basis as the directdisposal of the relevant assets or liabilities (i. e., Except for the corresponding share accounted for under the equitymethod in the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan bythe acquirer, the remainder is converted to investment income for the period at the purchase date).(1) Judging standard of the controlThe consolidation scope of consolidated financial statements is determined on the basis of control. Control meansthat the Company has the power over the investee, enjoys a variable return by participating in the relevant activities ofthe investee, and has the ability to use the power of the investee to influence the amount of the return. Among them,the Company has the current right to enable the Company to dominate the relevant activities of the investeeregardless of whether the Company actually exercises the power; if the return from the investee may change with theperformance of the investee, it shall be deemed to enjoy a variable return; if the Company exercises the decision-making power as the principal responsible person, the Company shall be deemed to use the power of the investee toaffect the return amount. The scope of the merger includes the Company and all of its subsidiaries. Subsidiary, refersto the subject controlled by the Company.The Company judges whether to control the investee on the basis of comprehensive consideration of all relevant factsand circumstances. The relevant facts and conditions mainly include: the purpose of the establishment of the investee;the relevant activities of the investee and how to make decisions on the relevant activities; whether the rights of theCompany enable the Company to dominate the relevant activities of the investee; whether the Company enjoys avariable return by participating in the relevant activities of the investee; whether the Company has the ability toinfluence the power of the investee; the relationship between the Company and the other parties, etc. Once changes inthe relevant facts and circumstances lead to changes in the relevant elements involved in the above control definition,the Company will reevaluate them.(2) Method of preparing the consolidated financial statements Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.From the date of acquiring the net assets of the subsidiary and the actual control right of production and operationdecisions, the Company will begin to bring it into the merger scope, and stop to do to so after the date of losing theactual control right. For the subsidiaries under disposal, the operating results and cash flow before the disposal datehave been appropriately included in the consolidated income statement and the consolidated cash flow statement; forthe current disposition subsidiaries, the beginning of the consolidated balance sheet will not be adjusted. Forsubsidiaries not under the same control, the operating results and cash flow after the purchase date have beenappropriately included in the consolidated income statement and the consolidated cash flow statement, and the initialand comparative numbers of the consolidated financial statements will not be adjusted. For the subsidiaries increasedby the enterprise merger under the same control and the merged party under the absorption merger, the operatingresults and cash flow from the beginning of the current period to the merger date have been appropriately included inthe consolidated income statement and the consolidated cash flow statement, and the comparison number of theconsolidated financial statements shall be adjusted at the same time.At the time of preparing the consolidated financial statements, if the accounting policies or accounting periodsadopted by the subsidiary is inconsistent with that adopted by the Company, necessary adjustments to the financialstatements of the subsidiary shall be made in accordance with the accounting policies and accounting periods of theCompany. For subsidiaries not acquired under the same control, their financial statements shall be adjusted on thebasis of the fair value of identifiable net assets on the purchase date.All significant transaction balances, transactions and outstanding profits within the Company should be offset by thepreparation of the consolidated financial statements.The shareholders" equity and the net profit and loss of the current period that are not owned by the Company shouldbe listed separately as the minority shareholders" equity and the minority shareholders" profit and loss under theshareholders" equity and net profit in the consolidated financial statements. The share of the current net profit andloss of the subsidiary belonging to the minority shareholders" equity shall be listed in the item of "minorityshareholders" profit and loss" under the net profit items in the consolidated profit statement. The loss of thesubsidiary shared by the minority shareholders exceeds the share of the minority shareholders "equity of the subsidiaryat the beginning of the period, and the number of the shareholders" equity is still reduced.When the control of the original subsidiary is lost due to the disposal of some equity investment or other reasons, theremaining equity shall be remeasured according to its fair value on the date of the loss of control. The sum of theconsideration obtained from the disposal of the shares and the fair value of the remaining shares, after deducting theshare of the net assets of the original subsidiary calculated from the purchase date, shall be included in the investmentincome of the period of the loss of control. For other comprehensive income related to the equity investment of theoriginal subsidiary, the accounting treatment of control shall be lost on the same basis as the direct disposal of therelevant assets or liabilities of the subsidiary. Subsequently, the remaining equity shall be measured in accordance withthe Accounting Standards for Business Enterprises No.2 —— Long-term Equity Investment or AccountingStandards for Business Enterprises No.22 —— Recognition and Measurement of Financial Instruments and otherrelevant provisions, see Note Ⅳ and 14 "Long-term Equity Investment" or Note Ⅳ and 10 "Financial Instruments".If the Company disposed of the equity investment in the subsidiary until the loss of control through multipletransactions, it is necessary to distinguish whether the transaction of the equity investment until the loss of control is apackage transaction. If the terms, conditions and economic impact of the disposal of subsidiary equity investmentsmeet one or more of the following circumstances, usually indicating that those multiple transactions should be treated Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.as package transactions:For each transaction that does not belong to the package transaction, according to the circumstances, the principle of"partial disposal of long-term equity investment of subsidiaries without losing control" (see Note Ⅳ ,14 "long-termequity investment" (2) ④) and "loss of control of the disposal of the original subsidiary" (see the preceding paragraph)should be applied in the accounting treatment. If the transaction of the subsidiary equity investment until the loss ofcontrol is a package transaction, the transaction shall be treated as a transaction of the disposal of the subsidiary andlosing the control; however, the difference between the disposal price and the share of the net assets of the subsidiarybefore the loss of control should be recognized as other comprehensive income in the consolidated financialstatements, and the profit and loss of the period of the loss of control.Joint venture arrangement means an arrangement under the joint control of two or more parties. The Company shall,according to the rights and obligations enjoyed in the joint venture arrangement, divide the joint venture arrangementinto joint operation and joint company. Joint operation means the joint venture arrangement in which the Companyenjoys the relevant assets of the arrangement and assumes the liabilities related to the arrangement. Joint companymeans a joint venture arrangement in which the Company only enjoys rights to the net assets of the arrangement.The company"s investment in joint venture shall be calculated by equity method, which shall be treated in accordancewith the accounting policies described in Note Ⅳ ,14 "Long-term Equity Investment" (2) ② "Long-term equityinvestment calculated by equity method".The Company, as the joint venture, recognizes the assets held by the Company, the liabilities and the liabilities held bythe shares of the Company, and the liabilities held by the Company. Recognize the income generated by the sale of theshare of the output incurred by the Company, and the expenses incurred by the Company in accordance with theshare of the Company.When the Company invests or sells assets as the joint venture (the assets do not constitute business, the same shouldbe applied below) or purchases assets from the joint venture, prior to the sale of such assets to a third party, theCompany recognizes only the portion of the profit or loss arising from the transaction attributable to otherparticipants in the joint venture. For the asset impairment loss in accordance with the Accounting Standards forBusiness Enterprises No.8 —— Asset Impairment, the Company shall recognize the loss for the assets that theCompany purchased the assets, the Company shall recognize the loss according to the share borne by itself.Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer toinvestments held by the company with a short term (generally due within three months from the purchase date), Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.which are highly liquid, easy to be converted into a known amount of cash and with little risk of change in value.(1) The method for determining the exchange rate when foreign currency transactions occurWhen a foreign currency transaction is initially recognized, the approximate spot exchange rate on the day of thetransaction is used to convert the amount into RMB.(2) On the balance sheet date, foreign currency currency items and foreign currency non-currency items shall betreated in the following methods:① Foreign currency currency items shall be converted through the central parity rate of RMB foreign exchange pricepublished by the People"s Bank of China on the balance sheet date. The exchange difference caused from thedifference between the spot exchange rate on the balance sheet date and the initial recognition date or the previousbalance sheet date shall be included in the current profit and loss.② Foreign currency non-monetary items measured at historical cost shall still be converted at the spot exchange rateon the date of the transaction without changing the bookkeeping standard amount; foreign currency non-monetaryitems measured at fair value shall be converted at the spot exchange rate on the date of fair value; the differencebetween the original bookkeeping standard amount shall be treated as the change of fair value (including change inexchange rate) and be included into the current profit and loss or other comprehensive income according to thenature of the non-monetary items.Monetary items refer to the monetary funds held by the Company and the assets or liabilities to be collected in a fixedor definite amount.Non-monetary items refer to items other than monetary items.(3) Conversion method of foreign currency financial statements of overseas operating entities:① The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date,and the owner"s equity items except the "undistributed profit" shall be converted at the spot exchange rate at the timeof occurrence;② The income and expense items in the income statement shall be converted at the exchange rate similar ③ Theconversion difference in the foreign currency financial statements generated from the above ① and ② conversionshall be listed separately under the owner"s equity items in the balance sheet.to the spot exchange rate on the date ofthe transaction;④ The financial statements of overseas operations in hyperinflation economy shall be converted in the followingmethods:Restate the balance sheet items by using the general price index, and restate the income statement items by using thegeneral price index changes, then convert at the spot rate at the latest balance sheet date.When the overseas operation is no longer in the hyperinflation economy, the restatement shall be stopped and thefinancial statements reconverted according to the price level on the date of cessation.⑤ In the disposal of overseas operations, the Company shall convert the difference between the foreign currencyfinancial statements related to the owner equity items of the balance sheet for the current disposal of overseas Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.operations, the conversion difference of the foreign currency financial statements of the disposal portion shall becalculated at the proportion of the disposal and transferred to the profit and loss of the current disposal.The financial instrument means a contract that forms the financial assets of one party and forms the financial liabilitiesor equity instruments of the other party. When the Company becomes a party to the financial instrument contract, itrecognize the relevant financial assets or financial liabilities.(1) Financial AssetsAccording to the business model of managing financial assets and the contractual cash flow characteristics of financialassets, the Company divides the financial assets into:The Company manages the business model of financial assets measured at amortized cost, and the contract cash flowcharacteristic of such financial assets is consistent with the basic lending arrangement, that is, the cash flow generatedon a specific date is only the payment of the principal and the interest based on the outstanding principal amount. Forsuch financial assets, the Company adopts the real interest rate method to conduct the follow-up measurement for theamortized cost, and the profit or loss generated by the amortization or impairment shall be recorded in the currentprofit and loss.The business model of the Company for managing such financial assets is to target both collecting and selling of thecontractual cash flow, and the contractual cash flow characteristics of such financial assets are consistent with thebasic lending arrangement. The Company measures such financial assets at fair value and their changes are included inother comprehensive income, but the impairment losses or gains, exchange gains and losses and interest incomecalculated in accordance with the real interest rate method are included in the current profits and losses.among:<1> Debt instrument investment measured at fair value and whose changes are included in other c Subsequentmeasurement should be performed at fair value. Interest rates, impairment losses or gains and exchange gains andlosses calculated by the real interest rate method shall be included in the current profits and losses, while other gainsor losses shall be included in other comprehensive gains. Upon the termination of recognition, the accumulated gainsor losses previously included in other comprehensive income shall be transferred from other comprehensive incomeand recorded in the current profit and loss.<2> Equity instrument investment measured at fair value and whose changes are included in other comprehensiveincomeSubsequent measurement should be performed at fair value. The dividends obtained (except for the part of theinvestment cost recovery) shall be included in the current profit and loss, and other gains or losses shall be included inother comprehensive income. Upon the termination of recognition, the accumulated gains or losses previouslyincluded in other comprehensive income shall be transferred from other comprehensive income and included in the Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.retained earnings.For non-trading equity instrument investments, the Company may, upon initial recognition, irrevocably designatethem as a financial asset measured at fair value and its changes included in other comprehensive income. Thedesignation is made on the basis of a single investment, and the relevant investment meets the definition of the equityinstrument from the perspective of the issuer.The Company classifies the above financial assets measured at amortized cost and the financial assets measured at fairvalue and whose changes are included in other comprehensive income as the financial assets measured at fair valueand whose changes are included in the current profit and loss. In addition, at the initial recognition, in order toeliminate or significantly reduce the accounting mismatch, the Company designated some financial assets as financialassets measured at fair value and their changes are included in the current profit and loss. For such financial assets, theCompany adopts the fair value for subsequent measurement, and the change in the fair value is included in the currentprofit and loss.The investment in equity instruments over which the Company has no control, joint control and significant influencewill be measured at fair value and its changes will be included in current profit or loss, and listed as trading financialassets; Those expected to hold for more than one year from the balance sheet date are listed as other non-currentfinancial assets.Financial assets are measured at fair value at the initial recognition. For financial assets measured at fair value andwhose changes are included in the current profit and loss, relevant transaction expenses are directly included in thecurrent profit and loss; for other categories of financial assets, relevant transaction expenses are included in the initialrecognition amount. For accounts receivable or notes receivable arising from the sale of products or the provision ofservices that do not include or do not take into account the significant financing components, the amount ofconsideration that the Company is expected to be entitled to collect shall be the initial recognition amount.An equity instrument is a contract that demonstrates ownership of the remaining interest in the assets excluding allliabilities. The company"s issuance (including refinancing), repurchase, sale or cancellation of equity instruments shallbe treated as changes in equity, and the transaction expenses related to equity transactions shall be deducted from theequity. The Company does not recognize the change in the fair value of the equity instruments.During the duration of the Company (including the "interest" generated by the "instruments" classified as "equityinstruments"), it shall be treated as profit distribution.On the basis of expected credit loss, the Company makes impairment provision and confirms the applicable expectedcredit loss measurement method (general method or simplified method). Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Credit loss refers to the difference between all the contractual cash flows receivable under the contract and all theexpected cash flows collected, i. e., the present value of the total cash shortage. Among them, for the financial assetspurchased or derived with credit impairment, the Company shall discount the actual interest rate of the financial assets.The general method of measuring expected credit loss refers to measuring whether the credit risk of the financialassets (including contract assets and other applicable items, the same below) assessed by the Company on the balancesheet date has increased significantly since the initial confirmation, the Company measures the loss preparationaccording to the amount equivalent to the expected credit loss in the whole duration; if the credit risk does notincrease significantly after the initial confirmation, the Company measures the loss preparation according to theamount equivalent to the expected credit loss in the next 12 months. For the financial assets purchased or derivedwith credit impairment, the Company shall only recognize the cumulative changes of the expected credit loss duringthe initial period on the balance sheet date. The Company considers all reasonable and grounded information,including forward-looking information, when assessing expected credit losses.For receivables and contractual assets that are formed from transactions regulated by Accounting Standard forBusiness Enterprises No. 14 - Revenue and do not have a significant financing component or that the Company doesnot take into account the financing component of contracts not exceeding one year, the Company uses a simplifiedmeasurement method to measure the loss provision in terms of the amount of expected credit losses over the entireduration.For financial assets other than the above measurement methods, the Company assess whether its credit risk hassignificantly increased since the initial recognition. If the credit risk has significantly increased since the initialconfirmation, the Company measures the loss provision according to the amount of the expected credit loss in theentire duration; if the credit risk does not increase significantly after the initial confirmation, the Company measuresthe loss provision according to the amount of the expected credit loss in the next 12 months.The Company uses available reasonable and warranted information, including forward-looking information, tocompare the risk of default of the financial instrument on the balance sheet date with the risk of default on the initialrecognition date to determine whether the credit risk of the financial instrument has increased significantly since theinitial confirmation.On the balance sheet date, if the Company determines that the financial instrument only has a low credit risk, it isassumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.The Company evaluates expected credit risk and measures expected credit losses on the basis of a single financialinstrument or portfolio of financial instruments. When based on a combination of financial instruments, the Companydivides financial instruments into different combinations based on common risk characteristics.The Company re-measures the expected credit loss on each balance sheet date, and the increase or reversal of the lossprovision will be recorded as impairment loss or gains. For the financial assets measured at amortized cost, the lossprovision shall offset the book value of the financial assets listed in the balance sheet; for the debt investmentmeasured at fair value and its changes included in other comprehensive income, the Company confirms the lossprovision in other comprehensive income, which does not offset the book value of the financial assets.If the default probability of a financial asset within the expected duration determined on the balance sheet date issignificantly higher than the default probability determined during the expected duration determined at the initial Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.confirmation, it indicates that the credit risk of the financial asset is significantly increased. Except in specialcircumstances, the Company should use the change of the default risk in the next 12 months as a reasonable estimateof the change of the default risk during the entire duration to determine whether the credit risk increases significantlyafter the initial confirmation.The Company evaluates credit risks for individual financial assets with significantly different credit risks, such asreceivables of relevant parties, receivables for matters in dispute with the other side or matters involved in litigation orarbitration, and receivables where the debtor is likely to fail to fulfill repayment obligations.In addition to individual financial assets that assess credit risk, the Company divides financial assets into differentgroups based on common risk characteristics and evaluates credit risk on the basis of a portfolio.At the end of the period, the Company calculates the estimated credit loss of various financial assets, if the estimatedcredit loss is greater than the book amount of the current impairment provision, the difference should be recognizedas an impairment loss; if it is less than the current impairment provision, the difference should be recognized as animpairment gain.The company needs to confirm the impairment loss of financial assets measured by amortized cost of financial assets,debt instruments measured at fair value and whose changes are included in other comprehensive incomes, as well aslease receivables, mainly including notes receivable, accounts receivable, receivables financing, other receivables,creditor"s rights investment, other creditor"s rights investment, long-term receivables, etc. In addition, for the contractassets and part of the financial guarantee contracts, impairment provisions and credit impairment losses are confirmedin accordance with the accounting policies described in this part.<1> The account for receivables and contract assets for expected credit losses based on a combination of credit riskcharacteristics Basis for confirming the Consolidation category Method of measuring expected credit losses consolidation Bank acceptance bill receivable With reference to the historical credit loss experience, combined with the current situation and the forecast of the Bill type future economic situation, the expected credit loss should be Trade acceptance receivable calculated through the default risk exposure and the expected credit loss rate of the whole duration With reference to the historical experience of credit loss, and Receivable-Account receivable age combined with the current situation and the forecast of the portfolio future economic situation, the comparison table between the Account receivable age Contract asset - Account receivable age age of accounts receivable and the expected credit loss rate of Portfolio the whole duration is prepared to calculate the expected credit loss Accounts receivable —— consolidated Based on historical credit loss experience, current conditions Scope of merger related parties portfolio and expected future economic conditions With reference to the historical credit loss experience, combined with the current situation and the forecast of the Other receivables - Account receivable future economic situation, prepare the comparison table of Account receivable age age portfolio other receivables age and the expected credit loss rate, and calculate the expected credit loss rate in the next 12 months or the whole duration Other receivables - consolidated The allowance for bad debts is measured with reference to Scope of merger related parties portfolio historical credit loss experience, combined with current Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Basis for confirming the Consolidation category Method of measuring expected credit losses consolidation conditions and expectations of future economic conditions<2> Aging combination of aging and expected credit loss ratio comparison tableAccount receivable age Expected credit loss rate of accounts Expected credit loss rate of other receivable receivablesWithin 6 months 5.00% 5.00%Six months to a year 10.00% 10.00%More than 3 years 100.00% 100.00%The age of accounts for the self-examination of accounts receivable and other receivables contracts starts from themonth when the payment actually occurs.For the receivables and contract assets formed by the transactions regulated by the Accounting Standards for BusinessEnterprises No.14 —— Income, the Company uses the simplified measurement method to measure the losspreparation according to the amount equivalent to the expected credit loss within the entire duration.For leasing receivables, by the accounting standards for enterprises no. 14 —— income specification of transactionformation, and without significant financing components or the company does not consider not more than a year offinancing receivables and contract assets of the contract, the company using the simplified measurement method,according to the entire duration of expected credit loss amount measurement loss.For notes receivable and debt receivables measured at fair value and whose changes are included in othercomprehensive income, if the maturity period is within one year (including one year from the initial confirmation date),they shall be reported as receivables financing. The Company measures the impairment loss by using the amount ofthe expected credit loss of the entire duration.Debt investment is mainly accounted for by bond investment measured at amortized cost. The Company measuresthe impairment loss in the amount equivalent to the expected credit loss within the next 12 months, or for the entireduration, based on whether its credit risk has increased significantly since the initial recognition.Other creditor"s rights investments shall be mainly accounted for bond investment measured at fair value and whosechanges are included in other comprehensive income. Financing of receivables with a maturity period of more thanone year from the initial confirmation date shall also be reported as other creditor"s rights investments. For other debtinvestments (including receivables listed in other debt investments), the Company shall measure the impairment lossby using the amount equivalent to the expected credit loss within the next 12 months or the entire duration based onwhether its credit risk has increased significantly after the initial confirmation. For receivables financing that does notinclude major financing components, the Company measures the loss preparation according to the expected amountof credit loss equivalent to the entire duration.<3> The criteria for the identification of receivables and contract assets for the provision of expected credit losses ona single basisFor receivables and contract assets whose credit risk is significantly different from combined credit risk, the Company Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.shall draw expected credit losses according a single item.If the financial assets meet one of the following conditions, the recognition of them shall be terminated:ownership of the financial assets to the transferred party;risks and rewards in the ownership of the financial asset, it has abandoned the control of the financial asset.Upon the confirmation termination of the investment of other equity instruments, the difference between the bookvalue and the consideration received and the sum of the fair value directly recorded in other comprehensive incomeshall be included in the retained earnings, and the book value of the remaining financial assets and the sum of the fairvalue directly recorded in other comprehensive income shall be included in the current profit and loss.If the Company has neither transferred nor retained almost all the risks and rewards in the ownership of the financialassets, and has not abandoned the control over the financial assets, the relevant financial assets shall be recognizedaccording to the extent of the transferred financial assets, and the relevant liabilities shall be recognized accordingly.The degree to which the continued involvement of the transferred financial assets is involved refers to the risk levelfaced by the enterprise caused by the change in the value of the financial assets.If the overall transfer of financial assets meets the conditions for termination of recognition, the difference betweenthe book value of the transferred financial assets and the sum between the sum of the consideration received from thetransfer and the fair value change originally included in other comprehensive income shall be included in the currentprofit and loss.If the partial transfer of the financial assets meets the conditions of termination of recognition, the book value of thetransferred financial assets shall be apportioned according to the relative fair value between the fair value of thetransfer and the sum of the sum of the transfer of the transfer shall be included into the current profit and loss.For the financial assets sold by recourse, or the endorsement transfer of the held financial assets, the Company needsto determine whether almost all the risks and rewards in the ownership of the financial assets have been transferred. Ifalmost all the risks and rewards in the ownership of the financial asset have been transferred to the transferred party,the recognition of the financial asset should be terminated; if the financial asset retains the ownership of the financialasset and almost all the risks and rewards in the ownership of the financial asset, the recognition of the financial assetshould not be terminated, if there is no transfer nor retention of almost all the risks and remuneration in theownership of the financial asset, the company shall continue to judge whether the enterprise has retained the controlof the asset and conduct treatment according to the principles described in the preceding paragraphs.If the Company no longer reasonably expects that the contractual cash flow of the financial asset can be recovered inwhole or in part, the book balance of the financial asset will be written down directly. This write-down constitutes thetermination of recognition of the relevant financial assets. This usually occurs when the Company determines that thedebtor has no assets or sources of income to generate sufficient cash flow to repay the amount that will be writtendown. However, the financial assets under the Company may allow the process to be affected by the execution Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.activities.If the write-down financial assets are recovered later, they shall be transferred back as impairment losses and recordedinto the profits and losses of the current period.(2) Financial liabilitiesFinancial liabilities are classified at the initial recognition as financial liabilities measured at amortized cost and financialliabilities measured at fair value and whose changes are included in the current profits and losses.In addition to the following, the Company classifies financial liabilities as financial liabilities measured at amortizedcost costs:① Financial liabilities measured at fair value and whose changes are included in current profits and losses, includetransactional financial liabilities (including derivatives of financial liabilities) and financial liabilities designated asmeasured at fair value and whose changes are included in current profits and losses.② The transfer of financial assets does not meet the conditions for termination of recognition or continues to beinvolved in the transferred financial assets.③ The financial guarantee contract not subject to Item ① or ② of this Article and a loan commitment at a belowmarket rate that is not subject to Item ① of this Article. In a business merger not under the same control, if thecontingent consideration recognized by the Company as the acquirer forms the financial liabilities, the financialliabilities should be measured at fair value and the changes should be included in the profit and loss of the currentperiod.At the time of initial recognition, in order to provide more relevant accounting information, the Company maydesignate financial liabilities measured at fair value and recorded in the profit and loss of the current period, whichmeets one of the following conditions:financial liabilities on a fair value basis in accordance with the corporate risk management or investment strategy setout in formal written documents, and report internally to key management on that basis. Such designation, once made,cannot be revoked.The financial liabilities of the Company are mainly financial liabilities measured at amortized cost, including notespayable and accounts payable, other payables, borrowings and bonds payable, etc. Such financial liabilities are initiallymeasured according to the fair value after deducting transaction expenses, and subsequently measured by the realinterest rate method. If the term is less than one year (including one year), it should be listed as current liabilities; if theterm is more than one year but is due within one year (including one year) from the balance sheet date, it should belisted as non-current liabilities due within one year; the rest are listed as non-current liabilities.When the current obligation of the financial liability has been discharged in whole or in part, the Company terminatethe recognition of the part of the financial liability or discharged obligation. The difference between the book value ofthe terminated part and the consideration paid shall be included in the current profit and loss.If the current obligation of the financial liability (or a part of it) has been discharged, the Company shall terminate therecognition of the financial liability (or such a part of the financial liability). Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(3) Determination of fair value of financial instrumentsFor financial instruments with active market, the fair value should be determined by the quotation in the active market.For financial instruments with no active market, the valuation techniques should be used to determine their fair value.The company divides the input values used by the valuation technology at the following levels and uses themsuccessively:① The first level of input value is an unadjusted offer of the same assets or liabilities in the active market that can beobtained on the measurement date;② The second level of input value is the input value directly or indirectly visible besides the first level of input value,including: the quotation of similar assets or liabilities in the active market; the quotation of the same or similar assetsor liabilities in the nonactive market; the other observable input value other than the quotation, such as the interestrate and yield curve observable during the normal quotation interval; the input value of market verification, etc.;③ The third level of input value is the unobservable input value of the relevant assets or liabilities, including interestrates that cannot be directly observed or cannot be verified by observable market data, stock volatility, future cashflow of abandonment obligations in business mergers, financial forecasts made using their own data, etc.(4) Follow-up measurementAfter the initial recognition, the Company shall measure different categories of financial assets at amortized cost, fairvalue and their changes in other comprehensive income or fair value and their changes in the current profit and loss.After the initial recognition, the Company shall measure different categories of financial liabilities at amortized cost,fair value and changes in the current profit or loss or by other appropriate methods.The amortized cost of a financial asset or financial liability is determined by the initial recognized amount of thefinancial asset or financial liability after the following adjustments:① Deduct the repaid principal.② Add or subtract the cumulative amortization amount formed by amortifying the difference between the initialrecognized amount and the due date amount by the effective interest rate method.③ Excluding accumulated losses (only for financial assets).The Company recognizes the interest income in accordance with the real interest rate method. Interest income shouldbe calculated from the book balance of financial assets multiplied by the effective interest rate unless:income according to the amortized cost of the amortized assets and the actual interest rate of the financial assets.subsequent period, the Company shall determine the interest income according to the amortized cost and actualinterest rate of the financial assets in the subsequent period. If the Company uses the real interest rate method tocalculate the credit impairment in the subsequent period, and the improvement can be objectively related to an eventoccurring after the application of the above policy (if the credit rating of the debtor"s credit rating is raised), theCompany transfers the real interest rate multiplied by the book balance of the financial assets. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(1) Classification of inventoryInventory includes raw materials, in-process products, semi-finished products, finished products, inventory goods,turnover materials, low-value consumables and contract performance costs, etc. (For "Contract Performance Cost",see Note Ⅳ, 28 and "Contract Acquisition Cost and Contract Performance Cost".)(2) Method of valuation of issued issuedThe inventory should be priced on the weighted average basis when issued.(3) The basis for determining the net realizable value of inventory and the withdrawal method for inventorydepreciation reserveOn the balance sheet date, the inventory shall be measured according to the lower cost and the net realizable value. Ifthe inventory cost is higher than its net realizable value, the provision for inventory depreciation shall be withdrawnand recorded into the current profit and loss. Net realizable value refers to the amount after the estimated selling priceof inventory minus the estimated cost, estimated sales expenses and related taxes at completion.The net realizable value of various inventories is determined as follows:① The inventory of goods directly used for sale, such as finished products, goods and materials used for sale, shall, inthe normal process of production and operation, determine the net realizable value after the estimated selling price ofthe inventory minus the estimated sales expenses and relevant taxes.② For the inventory of materials to be processed, its net realizable value is determined in the normal course ofproduction and operation by the estimated selling price of the finished products produced less the estimated cost tobe incurred at the time of completion, estimated selling expenses and related taxes.③ On the balance sheet date, if one part of the same inventory has the contract price without the other part, the netrealizable value shall be determined respectively, and compared with the corresponding cost, the amount of thewithdrawal or reversal of the inventory depreciation provision shall be determined respectively.Inventory depreciation provision shall be made according to a single inventory item (or inventory category), andinventory depreciation provision shall be related to the same or similar product series produced or sold in the sameregion, and is difficult to be measured separately from other items.(4) Inventory systemThe inventory system adopts the perpetual inventory system.(5) The amortization method of low-value consumables and packagingThe low-value consumables are amortized by 50-50.(1) Methods and standards for the recognition of contract assetsThe contractual asset means the right to receive a consideration and to depend on any other factor than the passage oftime. Contractual assets and liabilities under the same contract are listed in net value, and contractual assets andliabilities under different contracts shall not be offset. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(2) Methods for determining and accounting for expected credit losses of contract assetsThe provision for impairment of contract assets shall be subject to the expected credit loss method of financialinstruments. For contractual assets that do not include significant financing components, the Company uses asimplified method to measure loss preparation. For contractual assets containing significant financing components,the Company measures loss provisions in general methods.In case of impairment loss of the contract assets, the amount shall be deducted and the "asset impairment loss" shalldebit the provision for impairment of the contract assets.(1) Non-current assets held for sale or disposal group recognition criteriaIf the Company recovers its book value primarily by sale (including the exchange of non-monetary assets withcommercial substance, the same below) rather than the continuous use of a non-current asset or disposal group, itshould be categorized under “held for sale”. The specific criteria shall simultaneously meet the following conditions:① According to the practice of selling such assets or disposal groups in similar transactions, they can be soldimmediately under current conditions;② The sale is most likely, where the company has made a resolution on a sale plan and obtained a definite purchasecommitment, and the sale is expected to be completed within a year.Among them, the disposal group is a group of assets disposed of as a whole by sale or other method in a transaction,and the liabilities directly related to those assets transferred in the transaction. Where the asset group or asset groupportfolio of the disposal group shares the goodwill acquired in the enterprise merger in accordance with theAccounting Standards for Business Enterprises No.8-Asset Impairment, the disposal group shall include the goodwillallocated to the disposal group.(2) Accounting treatment methodsIf the carrying value of non-current assets held for sale and disposal group is higher than the net amount after usingthe fair value minus disposal expense when the initial measurement or remeasurement is made at the balance sheetdate, the carrying value should be written down to the net amount after using the fair value minus the disposalexpense, and the amount written down should be recognized as asset impairment loss and included in current profitor loss, and the impairment provision for assets held for sale should also be made. For the disposal group, theconfirmed asset impairment loss first offset the carrying value of goodwill in the disposal group, and then offset thebook value of the non-current assets stipulated in the accounting Standards for Business Enterprises No.42- -Non-current Assets held for Sale, Disposal Group and Terminated Operation (hereinafter referred to as the "Standards forHolding for Sale" in the disposal group). After deducting the selling expense, if the net amount of the fair value of thedisposal group held for sale increased on the subsequent balance sheet date, the amount previously written down shallbe restored and reversed within the amount of asset impairment loss recognized in the non-current assets asprescribed by the held for sale standard after being classified into the holding for sale category, the carry-back amountis recognised in profit or loss for the current period and its carrying value is increased in proportion to the carryingvalue of each non-current asset in the disposal group as measured by the applicable hold-for-sale criteria other than Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.goodwill; The carrying value of goodwill that has been written off, as well as the asset impairment losses recognizedprior to classifying non-current assets as held for sale under the applicable holding for sale measurement criteria,cannot be rolled back.There is no depreciation or amortization of the non-current assets held for sale or the non-current assets in thedisposal group, and the interest and other expenses of the liabilities in the disposal group held for sale continue to berecognized.If the non-current assets or disposal group no longer meets the requirements of the held for sale category, it will notcontinue to divide the held for sale category or remove the non-current assets from the disposal group held for saleand measure below:① The book value before the held for sale category, the amount adjusted for depreciation, amortization orimpairment assumed not to be recognized in the held for sale category;② Recoverable amount.(3) Termination of operationTermination of operations is a component of ownership that is separate and has been disposed of or classified by theCompany under one of the following conditions:① The component represents an independent main business or a separate main operating area;② This component is part of a plan associated with the disposition of a separate principal business or a separate mainbusiness area of operation;③ The component is a subsidiary acquired exclusively for resale.The Company shall separately report the profit and loss of terminated operation in the income statement, and theimpairment loss and loss amount of terminated operation and loss shall be presented as the profit and loss ofterminated operation.The long-term equity investment mentioned in this part refers to the long-term equity investment that the Companyhas the control, joint control or significant influence on the invested unit. The Company has no control, joint controlor significant influence of the invested unit as a financial assets accounting measured at fair value and included in thecurrent profits and losses. If the changes is non-tradable, the Company may choose to designate it as financial assetsaccounting measured at fair value and whose changes are included in other comprehensive income. The accountingpolicies are detailed in Note IV and 10 "Financial Instruments".Joint control means the common control of the Company over an arrangement in accordance with the relevantagreement, and the relevant activities of the arrangement must be decided after the unanimous consent of theparticipants who share the control right. Significant impact means that the Company has the right to participate in thedecision-making of the financial and operational policies of the investee, but is unable to control or jointly control theformulation of these policies together with other parties.(1) Determination of the investment costFor the long-term equity investment acquired by the enterprise merger under the same control, the initial investmentcost of the long-term equity investment shall be based on the merger date of the share of the book value of the Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.incorporated party in the consolidated financial statements of the final controlling party. The difference between theinitial investment cost of the long-term equity investment and the cash paid, the transferred non-cash assets and thebook value of the debts undertaken shall adjust the capital reserves; if the capital reserve is insufficient, the retainedearnings shall be adjusted. If the issue of equity securities is taken as the merger consideration, the capital reservesshall be adjusted on the basis of the share of the shareholders" equity of the merged party in the consolidated financialstatements of the final controlling party as the initial investment cost of the long-term equity investment and the totalface value of the issued shares as equity, and the difference between the initial investment cost of the long-term equityinvestment and the total face value of the issued shares; if the capital reserve is insufficient to offset, the retainedearnings shall be adjusted. If the equity of the merged party under the same control is acquired through multipletransactions step by step, and the enterprise merger under the same control, whether it is a "package transaction"respectively: for a "package transaction", each transaction shall be treated as a transaction that obtains control right. Ifit does not belong to the "package transaction", the capital reserves shall be adjusted on the merger date according tothe sum of the book value of the equity of the shares of the final controller and the initial investment cost of the bookvalue before the merger date; if the capital reserve is insufficient, the retained earnings shall be adjusted. The equityinvestment held by the equity method before the merger date or recognized as financial assets measured at fair valueand whose changes are included in other comprehensive income shall not be accounted for for the time being.For the long-term equity investment acquired by the enterprise merger not under the same control, the merger costshall be taken as the initial investment cost of the long-term equity investment on the purchase date, and the mergercost includes the sum of the assets paid by the acquirer, the liabilities incurred or assumed, and the equity securitiesissued. If the equity of the acquirer is acquired step by step through multiple transactions and the enterprise merger isnot under the same control, it shall be treated whether it belongs to the "package transaction" respectively: for the"package transaction", each transaction shall be treated as a transaction acquiring control. If it does not belong to the"package transaction", the sum of the book value of the equity investment of the original acquiree plus the newinvestment cost shall be the initial investment cost of the long-term equity investment calculated according to the costmethod. If the equity originally held is accounted by the equity method, the relevant other comprehensive incomeshall not be treated for the time being.The fee of audit, legal services, evaluation and consulting and other related management matters incurred by theconsolidated party or the acquirer shall be recorded into the current profits and losses at the time of occurrence.Equity investments other than long-term equity investments formed by business mergers are initially measured at cost,which depends on the manner in which long-term equity investments are acquired. It is determined in accordancewith the actual cash purchase price paid by the Company, the fair value of the equity securities issued by the Company,the value agreed in the investment contract or agreement, the fair value or original book value of the assets exchangedin the non-monetary asset exchange transaction, and the fair value of the long-term equity investment itself. Fees,taxes and other necessary expenses directly related to the acquisition of long-term equity investments are also includedin the cost of investment. For the additional investment that can exert a significant impact on the invested unit orexercise joint control but does not constitute control, the cost of long-term equity investment is the sum of the fairvalue of the original equity investment plus the cost of the new investment determined in accordance with AccountingStandard for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(2) Follow-up measurement and profit and loss recognition methodsThe long-term equity investment with joint control (except the co-operator) or significant impact, shall be accountedby the equity method. In addition, the Company"s financial statements use the cost method to account for the long-term equity investment that can be controlled by the invested unit.① Long-term equity investment calculated by the cost methodWhen the cost method is used, the long-term equity investment is priced at the cost of the initial investment, and thecost of the additional or withdrawn investment is adjusted for the long-term equity investment. In addition to the cashdividends or profits actually paid at the time of obtaining the investment or the cash dividends declared but not yetpaid included in the consideration, the investment income of the current period shall be recognized in accordancewith the cash dividends or profits declared by the invested unit.② Long-term equity investment accounted for by the equity methodWhen using the equity method, if the initial investment cost of a long-term equity investment is greater than the fairvalue share of the investee"s identifiable net assets when the investment is made, the initial investment cost of thelong-term equity investment should not be adjusted; If the initial investment cost is less than the fair value share of theidentifiable net assets of the investee, the difference should be included in the current profit or loss, and the cost oflong-term equity investment should be adjusted at the same time.When using the equity method, the investment income and other comprehensive income shall be confirmed accordingto the share of the book value of the invested unit; the value and the book value of the long-term equity investmentshall be adjusted according to the profit or cash dividend of the long-term equity investment and included in thecapital reserve. When recognizing the share of the net profit and loss of the invested entity, the net profit of theinvested entity shall be adjusted on the basis of the fair value of the identifiable assets of the invested entity at the timeof obtaining the investment. If the accounting policies and accounting periods adopted by the invested entity areinconsistent with the Company, the financial statements of the invested entity shall be adjusted in accordance with theaccounting policies and accounting periods of the Company, and the investment income and other comprehensiveincome shall be confirmed. For the transactions between the Company and the joint venture, if the assets invested orsold do not constitute business, the unrealized internal transaction gains and losses shall be offset by the Company,and the investment gains and losses shall be recognized. However, the unrealized internal transaction loss incurred bythe Company and the invested entity belongs to the impairment loss of the transferred assets and shall not be offset.If the assets invested by the Company into a joint venture or an associate constitute a business, and the investor thusobtains long-term equity investment but does not acquire control, the fair value of the invested business shall be takenas the initial investment cost of the new long-term equity investment, and the difference between the initial investmentcost and the book value of the invested business shall be fully included in the current profit or loss. Where the assetssold by the Company to a joint venture or associate constitute a business, the difference between the considerationobtained and the carrying value of the business should be fully included in the current profit or loss. Where the assetspurchased by the Company from associates and joint ventures constitute business, the accounting treatment shall becarried out in accordance with the provisions of Accounting Standard for Business Enterprises No. 20 - Business Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Combination, and the gain or loss related to the transaction shall be fully recognized.When confirming the net loss incurred by the investee, the book value of the long-term equity investment and theother long-term equity that substantially constitute the net investment of the investee shall be written down to zero. Inaddition, if the Company has the obligation to bear additional losses to the investee, the estimated liabilities shall berecognized according to the expected obligations and included in the current investment losses. If the invested entityachieves net profit in the following period, the Company shall resume the recognized income share after the earningsshare makes up for the unrecognized loss share.③ Acquisition of minority equityAt the time of preparing the consolidated financial statements, the capital reserves shall be adjusted due to thedifference between the new long-term equity investment of the purchase of minority shares and the share of the netassets continuously calculated by the subsidiary since the purchase date (or merger date). If the capital reserves areinsufficient to write down, the retained earnings shall be adjusted.④ Disposal of long-term equity investmentsIn the consolidated financial statements, the parent company shall partially dispose of the long-term equity investmentof the subsidiary and the difference between the disposal price and the long-term equity investment of the subsidiaryand the disposal of the relevant accounting policies described in Note IV, 6, "Judgment Standard for Control andPreparation Method of Consolidated Financial Statements" (2).For the disposal of long-term equity investment under other circumstances, the difference between the book valueand the actual obtained price shall be recorded in the current profit and loss.For the long-term equity investment calculated by the equity method, if the remaining equity after disposal is stillcalculated by the equity method, the other comprehensive income parts originally included in the shareholders" equityshall be treated on the same basis as the direct disposal of the related assets or liabilities of the invested unit in thecorresponding proportion. The owner"s equity recognized due to the owner"s equity other than the net profit and loss,other comprehensive income and profit distribution shall be transferred to the profit and loss of the current period.If a long-term equity investment is accounted for by the cost method and the remaining equity is still accounted for bythe cost method after disposal, the other comprehensive income recognized by the equity method or financialinstrument recognition and measurement criteria before the acquisition of control of the investee shall be accountedfor on the same basis as the direct disposal of the relevant assets or liabilities by the investee. And carry forward thecurrent profit and loss pro rata; Changes in owners" equity other than net profit and loss, other comprehensive incomeand profit distribution in the net assets of investee units recognized as a result of the equity method of accounting arecarried forward to current profit and loss in proportion.If the Company loses control of the investee due to the disposal of part of the equity investment, when preparingindividual financial statements, the remaining equity after disposal can exercise common control or exert significantinfluence on the investee, it shall be calculated according to the equity method, and when the remaining equity isregarded as self-acquired, it shall be adjusted by the equity method. If the remaining equity after disposal cannot jointlycontrol or exert significant influence on the investee, it shall be accounted for in accordance with the relevantprovisions of the Standards for the recognition and measurement of financial instruments, and the difference between Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.the fair value and the carrying value on the date of loss of control shall be included in the current profit or loss. Othercomprehensive income recognised by the equity method or financial instrument recognition and measurementstandards before the Company acquired control of the investee shall be accounted for on the same basis as the directdisposal of the relevant assets or liabilities by the investee when it loses control of the investee. Changes in owner"sequity other than net profit and loss, other comprehensive income and profit distribution in the net assets of theinvestee recognized by the equity method are transferred to current profit and loss when the control over the investeeis lost. Among them, if the remaining equity after disposal is accounted for by the equity method, othercomprehensive income and other owner"s equity are carried forward in proportion; If the remaining equity afterdisposal is changed to accounting treatment according to the recognition and measurement standards of financialinstruments, other comprehensive income and other owners" equity are all carried forward.If the Company loses its joint control or significant impact on the invested unit due to the disposal of part of theequity investment, the remaining equity after disposal shall be calculated according to the financial instrumentrecognition and measurement criteria, and the difference between the fair value and the book value on the day of theloss of joint control or significant impact shall be recorded into the current profit and loss. The original equityinvestment due to the equity method and accounting confirmation of other comprehensive income, in the terminationof the accounting of the basis of the same, because of the investment except the net profit and loss, othercomprehensive income and profit distribution of other owner"s equity changes, when the equity method all into thecurrent investment income.The Company will dispose of its equity investment in subsidiaries step by step through multiple transactions until itloses control. If the above transactions are package transactions, each transaction shall be accounted for as onetransaction disposing of the equity investment of subsidiaries and losing control, and the difference between thedisposal price of each disposal and the book value of the long-term equity investment corresponding to the equitydisposed of before the loss of control shall be the difference between the disposal price and the long-term equityinvestment corresponding to the equity disposed before the loss of control. First recognized as other comprehensiveincome, when the loss of control is transferred to the loss of control of the current period profit and loss.See Note Ⅳ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method ofimpairment provisions for long-term equity investment.The company"s investment real estate refers to the real estate held for the purpose of earning rent or capitalappreciation, or both, including the land use right leased, the land use right held and ready to be transferred after theappreciation, and the leased buildings. The investment real estate shall be initially measured according to the cost, andthe cost model shall be adopted to subsequently measure the investment real estate or the fair value model on thebalance sheet date.(1) Adopt the cost modelInvestment real estate is depreciated or amortized by the following useful life and estimated net residual value rate:Name Service life Estimated net residual value Annual depreciation rate or rate amortization rate Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Name Service life Estimated net residual value Annual depreciation rate or rate amortization rateHouse and buildings 20-40 years 0%-10% 2.25%-5.00%See Note Ⅳ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method of investmentreal estate impairment provisions using the cost model.(2) Adopt the fair value modelWithout depreciation or amortization of the investment real estate, the book value shall be adjusted based on the fairvalue of the investment real estate on the balance sheet date, and the difference between the fair value and the originalbook value shall be included in the current profit and loss.An investment property shall be derecognized on disposal or when it is permanently withdrawn from use and nofuture economic benefits are expected from its disposal. Proceeds from the sale, transfer, retirement, or destruction ofthe investment property deducting its carrying amount and related taxes shall be recognized in profit or loss for thecurrent period.(1) Fixed assets recognition conditionsFixed assets refer to tangible assets held for the production of goods, providing labor services, leasing or operationand management, and with a service life of more than one fiscal year. Fixed assets shall be confirmed if the followingconditions are met:① Economic benefits related to this fixed asset are likely to flow into the enterprise;② The cost of this fixed asset can be measured reliably.(2) Various depreciation methods of fixed assetsAll kinds of fixed assets adopt the straight line method and make depreciation according to the following useful life,estimated net residual value rate and depreciation rate:Categories Depreciation method Service life Estimated net salvage rate Yearly depreciation rateHouses and buildings straight-line depreciation 20-40 years 0%-10% 2.25%-5.00% methodShips and nets straight-line depreciation 5-30 years 3%-5% 3.17%-19.40% methodMachinery equipment straight-line depreciation 8-20 years 0%-10% 4.50%-12.50% methodDelivery equipment straight-line depreciation 5 years 0%-10% 18.00%-20.00% methodFurniture and office straight-line depreciation 5 years 0%-10% 18.00%-20.00%equipment method(3) See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and the withdrawal method ofthe impairment provisions of fixed assets. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.The cost of the project under construction shall be determined according to the actual project expenditure, includingthe project expenditure incurred during the period under construction, the capitalized borrowing expenses before theproject reaches the predetermined usable state and other related expenses.The construction under construction is carried forward to fixed assets after reaching the predetermined usable state, inwhich the construction under construction is carried forward to fixed assets when delivered with fishing conditions,and the construction is carried forward to fixed assets when the physical construction (including installation) work hasbeen fully completed or has been substantially completed.See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and impairment provision methodof the construction under construction.(1) If the loan expenses incurred by the Company can be directly attributed to the purchase, construction orproduction of the assets meeting the capitalization conditions, they shall be capitalized and included in the relevantasset costs. Assets that meet the capitalization conditions refer to the assets such as fixed assets, investment real estateand inventory that take a long time (usually one year or more) for purchase, construction or production activities toreach the predetermined marketable status. Other borrowing expenses shall be recognized as expenses according tothe amount of occurrence and shall be included in the current profits and losses. Borrowing expenses includeborrowing interest, amortization of discount or premium, auxiliary expenses and exchange difference due to foreigncurrency borrowing, etc.(2) If the borrowing costs meet the following conditions, the capitalization should begin:① Asset expenditure has been incurred, including the cash paid for the purchase, construction or production of assetsthat meet the conditions for capitalization, the transfer of non-cash assets or the assumption of interest-bearing debts;② Borrowing expenses have been incurred;When the purchase, construction or production of assets meeting the capitalization conditions reach thepredetermined usable or marketable status, the borrowing expenses shall be capitalized.In case of the abnormal interruption of the assets for more than 3 consecutive months, the capitalization of theborrowing expenses shall be suspended. The borrowing expenses incurred during the interruption period arerecognized as expenses and recorded into the current profits and losses until the purchase and construction of theassets or the production activities resume. If the interruption is due to the capitalization of the qualified assetspurchased or produced as necessary for the intended usable or marketable status, the capitalization of the borrowingcosts continues.(3) During the capitalization period, the amount of interest (including amortization of discounts or premiums)capitalized for each accounting period shall be determined as follows:① Where a special loan is borrowed for the purpose of purchase, construction or production of assets that meet theconditions for capitalization, the amount shall be determined by the interest expense actually incurred in the current Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.period, minus the interest income of the unused borrowing funds deposited in the bank or the investment incomeobtained from temporary investment.② Where a general loan is occupied for the purpose of purchase, construction or production of assets that meet theconditions for capitalization, the amount of interest on which the general loan shall be capitalized shall be calculatedand determined by multiplying the weighted average of the accumulated asset expenditure exceeding the special loanby the capitalization rate of the general loan occupied. The capitalization rate is determined according to the weightedaverage interest rate of general borrowing.Where there is a discount or premium for the loan, the amount of discount or premium for each accounting periodshall be determined according to the actual interest rate method and the amount of interest for each period shall beadjusted.During the capitalization period, the amount of interest in each accounting period shall not exceed the amount ofinterest actually incurred by relevant loans in the current period.(4) The auxiliary expenses incurred by special loans, which are incurred before the assets purchased, built or producedeligible for capitalization reach the predetermined usable or marketable state, are capitalized according to the amountincurred at the time of occurrence and are included in the cost of the assets eligible for capitalization; If an asset that ispurchased, built or produced and eligible for capitalization has reached a predetermined usable or marketable state, itshall be recognized as an expense based on the amount incurred at the time of occurrence and recorded in the currentprofit or loss. Auxiliary expenses incurred by general loans are recognized as expenses according to their amount atthe time of occurrence and are included in current profit or loss.(1) Intangible assets refer to the identifiable non-monetary assets owned or controlled by an enterprise without aphysical form. Intangible assets are initially measured according to the cost. Analyze and judge the service life of theintangible assets when they are acquired.(2) The Company generally determines the useful life of intangible assets:① Information on the usual life cycle of the product produced with the asset;② Technology, process and other aspects of the current situation and the estimation of the future development trend;③ The market demand for the products or services produced with the asset;④ Action expected by current or potential competitors;⑤ Prospective maintenance expenditures to maintain the ability to bring economic benefits to the asset, and theCompany"s ability to expect to pay related expenditures;⑥ Relevant legal provisions or similar restrictions on the control period of the asset, such as the concession period,lease term, etc.;⑦ The correlation with the service life of other assets held by enterprises.If it is impossible to foresee the period of intangible assets to bring economic benefits to the Company, it shall beregarded as intangible assets with uncertain service life. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(3) For intangible assets with limited service life, the system shall amortize reasonably (or straight line method) duringthe service life. At the end of each year, the Company will review the service life and amortization methods ofintangible assets with limited service life. If the service life and amortization method of intangible assets are differentfrom the previous estimate, the amortization period and amortization method will be changed. For the intangibleassets with limited service life, the service life and the estimated net residual value rate of the intangible assets are asfollows:Name Service life Judging basis Estimated net of service life salvage rateLand use right 42-49 years Term of land certificate 0%Software 5-10 years Historical experience 0%See Note Ⅳ and 20 "Long-term asset Impairment" for the impairment test method and impairment provisionwithdrawal method of intangible assets with limited service life.(4) Intangible assets with uncertain service life include intangible assets that have been continued to be used afteramortization, while intangible assets with uncertain service life shall not be amortized(5) Internal research and developmentstage, including:substantially improved materials, devices, products, etc.the current period"s profit and loss; expenditures during the development phase that meet the following conditions arerecognized as intangible assets:with the intangible assets exist in the market or that the intangible assets themselves exist in the market, and that theintangible assets will be used internally, their usefulness shall be proved;assets and having the ability to use or sell the intangible assets;For non-current non-financial assets such as fixed assets, construction projects under construction, use assets withlimited use life, intangible assets, investment real estate measured by cost mode and long-term equity investment in Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.subsidiaries, joint ventures and joint ventures, the Company determines whether there are signs of impairment on thebalance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and the impairmenttest shall be conducted. Goodwill, intangible assets with uncertain service life and intangible assets that have not yetreached the usable state shall be subject to impairment test every year, regardless of whether there are signs ofimpairment.If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value, theimpairment provision shall be drawn according to the difference and included in the impairment loss. The recoverableamount is the higher value between the fair value of the asset minus the disposal expense and the present value of theestimated future cash flow of the asset. The fair value of the asset is determined according to the price of the salesagreement in fair trading; if there is no sales agreement but there is an active asset market, the fair value is determinedaccording to the acquiree bid of the asset; if there is no sales agreement and asset active market, the fair value of theasset is estimated on the basis of the best-available information. The disposal expenses include legal expenses relatedto the disposal of the assets, related taxes, handling fees, and direct expenses incurred to bring the assets to amarketable status. The present value of the estimated future cash flow of the asset shall be determined according tothe amount of the estimated future cash flow generated during the continuous use of the asset and the final disposal atan appropriate discount rate. The asset impairment provision is calculated and confirmed on the basis of a single asset.If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall bedetermined by the asset group to which the asset belongs. Asset groups are the minimum portfolio that canindependently generate cash inflows.In the case of impairment test of goodwill, the carrying value of goodwill is allocated to the relevant asset groupreasonably from the date of purchase; if it is difficult to allocate to the relevant asset group, it shall be allocated to therelevant asset group portfolio. The relevant asset group or asset group portfolio is an asset group or asset portfoliothat can benefit from the synergies of business consolidation and is not greater than the reporting division determinedby the Company.When the impairment test is conducted on the relevant asset group or asset group portfolio containing goodwill, ifthere are signs of impairment in the asset group or asset group portfolio related to goodwill, the impairment test shallbe conducted on the asset group or asset group portfolio excluding goodwill to calculate the recoverable amount andconfirm the corresponding impairment loss. Then conduct impairment tests on the asset group or portfolio of assetgroups containing goodwill, Compare its carrying value to the recoverable amount, If the recoverable amount is lowerthan the carrying value, The amount of impairment loss is first offset against the carrying value of goodwill in the assetgroup or portfolio, According to the proportion of the book value of other assets except goodwill in the asset groupor asset group portfolio, offset the book value of other assets, Provided that the book value of each asset afterdeduction shall not be lower than the fair value of the asset minus the net amount (if certain) and the present value ofthe estimated future cash flow of the asset (if certain), And not lower than zero.Once the impairment loss of the above assets is recognized, the value shall not be recovered in the later period.Long-term deferred expenses are the expenses incurred by the Company that shall be borne by the current andsubsequent period for more than one year (excluding one year). Long-term deferred expenses are equally amortized Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.during the benefit period. If the long-term deferred expenses cannot benefit the later accounting period, theunamortized surplus value will be transferred to the current profit and loss.Long-term deferred expenses are amortized on a straight-line basis over the following period:Name Amortization periodRenovation costs 2-10 yearsContract liabilities reflect the obligation to transfer goods to the customer for the consideration received or receivable.If the customer has paid the contract consideration or has obtained the right to receive the contract considerationunconditionally before the transfer to the customer, the contract liabilities shall be recognized according to theamount received or receivable when the actual payment and the amount due. Contractual assets and liabilities underthe same contract shall be listed in net value, and contractual assets and liabilities under different contracts shall not beoffset.(1) The range of employee compensationEmployee compensation refers to the various forms of compensation or compensation given by the company for theservice provided by the employee or for the termination of the labor relationship. Employee compensation includesshort-term compensation, post-resignation benefits, dismissal benefits and other long-term employee benefits. Thebenefits provided by the company to the employees" spouses, children, dependants, family of the deceased employeesand other beneficiaries also belong to the employee compensation.(2) Short-term compensation refers to the full employee compensation to be paid within 12 months after the end ofthe annual reporting period provided by relevant services.Short-term salary includes social insurance premiums such as employees" wages, bonuses, allowances and subsidies,employee welfare, medical insurance, working injury insurance and maternity insurance, housing provident fund, tradeunion fund and employee education fund, short-term paid absence, short-term profit sharing plan, non-monetarywelfare and other short-term salary.Short-term compensation during the accounting period when the employee provides services for the company, theactual short-term compensation is recognized as a liability and recorded in the current profit and loss or related assetcosts.Post-resignation benefits refer to all forms of remuneration and benefits provided by the Company for the retirementof the employee or the termination of the labor relationship with the Company, except for short-term compensationand dismissal benefits.Post-resignation benefit plan include the defined contribution plan and the defined benefit plan. Among them, thedefined contribution plan is the post-resignation welfare plan in which the Company no longer assumes furtherpayment obligations; the defined benefit plan refers to the post-resignation welfare plan other than the definedcontribution plan.The defined contribution plan includes basic endowment insurance, unemployment insurance, etc. During the Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.accounting period when the employee provides the service, the amount payable calculated according to the definedcontribution plan shall be recognized as liabilities and included in the current profit and loss or related asset costs.At the end of the reporting period, the employee compensation costs arising from the defined benefit plan should berecognized as the following components:① Service costs, including current service costs, past service costs, and settlement gains or losses.② Net interest on the net liabilities or net assets of the defined benefit plan, including interest income on the plannedassets, interest expense on the obligations of defined benefit plan, and interest affected by the asset ceiling.③ Remeasure the change in the net liabilities or net assets of the defined benefit plan.Unless other accounting standards require or allow employee benefit costs to be included in asset costs, items ① and② above shall be included in current profits and losses; item ③ shall be included in other comprehensive benefits andwill not be returned to profits and losses during subsequent accounting periods, but these amounts recognized inother comprehensive benefits may be transferred within the equity.Under the defined benefit plan, the past service costs are recognized as current expenses on the following date:Determine a settlement benefit or loss when setting a defined benefit plan settlement.(3) Dismissal benefits refer to the compensation given by the Company to the employee to terminate the laborrelationship with the employee before the expiration of the labor contract, or to encourage the employee to voluntarilyaccept the reduction.If the Company provides dismissal benefits to the employees, the Company shall confirm the liabilities and include inthe current profit and loss: when the Company cannot unilaterally withdraw the dismissal benefits due to thetermination of labor relationship plan or reduction proposal; when the Company recognizes the costs or expensesrelated to the restructuring of the dismissal benefits.(4) Other long-term employee benefits refer to all employee compensation except short-term compensation, post-resignation benefits and dismissal benefits, including long-term paid absence, long-term disability benefits, long-termprofit sharing plan, etc.Other long-term employee benefits provided by the Company to employees that meet the conditions of the depositplan shall apply to the relevant provisions of the above deposit plan.Except for the circumstances that meet the conditions for the defined contribution plan, other long-term employeewelfare net liabilities or net assets shall be recognized and measured in accordance with the relevant provisions of thedefined benefit plan. At the end of this period, the Company recognizes the employee compensation costs generatedby other long-term employee benefits as the following components:① Service cost.② Net interest on other long-term employee welfare net liabilities or net assets.③ Re-measure changes in the net liabilities or net assets of other long-term employee benefits.In order to simplify the relevant accounting treatment, the total net amount of the above items is included in the Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.current profit or loss or related asset costs.liabilities:(1) This obligation is the current obligation of the enterprise;(2) Performing this obligation is likely to lead to the outflow of economic benefits from the enterprise;(3) The amount of the obligation can be reliably measured.The estimated liabilities shall be initially measured at the best estimate of the expenditures required to meet therelevant current obligations.(4) Onerous contractAn onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceedthe economic benefits expected to be received under it. When a contract to be fulfilled becomes an onerous contract,and the obligations arising from it meets the aforementioned recognition conditions of provisions, the portion of theestimated contract loss that exceeds the recognized impairment loss (if any) on the subject assets of the contract shallbe recognized as a provision.(5) Constructive obligationFor detailed formal restructuring plans that have been announced, the direct expenses related to restructuring shall berecognized as the provision amount, provided that the aforementioned recognition conditions of provisions are met.[For constructive obligations in the sale of part of a business, restructuring-related obligations are recognized onlywhen the Company promises to sell part of its business (that is, a binding sale agreement has been executed).](1) Accounting treatment method of share paymentShare payment is a transaction that grants the equity instruments or assumes the liabilities determined based on theequity instruments for the purpose of obtaining the services provided by the employee or other parties. Share paymentis divided into share payment settled by equity and share payment settled in cash.① Share payments settled by equityShare payment for equity settlement of services provided by the employee, should be measured at the fair value of theemployee equity instrument on the grant date. The amount of the fair value shall be calculated in the relevant costs orexpenses on the basis of the best estimate of the waiting period, including the relevant costs or expenses on the grantdate and the capital reserve shall be increased accordingly.On each balance sheet date during the waiting period, the Company makes the best estimate and corrects theestimated number of feasible equity instruments based on the latest subsequent information, including changes in thenumber of feasible employees. The impact of the above estimate shall be included in the relevant costs or expenses ofthe current period, and the capital reserves shall be adjusted accordingly.In exchange for the equity settlement of the fair value of the service can be measured reliably, according to the fairvalue of the service in the date, if the fair value of the other services cannot be measured reliably, but the fair value ofthe equity instrument can be measured reliably, according to the fair value of the date of the service, included in therelevant costs or expenses, and increase the shareholders" equity accordingly. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.② Payment in shares settled in cashShare payments settled in cash are measured at the fair value of the liabilities determined on the basis of shares orother equity instruments undertaken by the Company. If the right is available immediately after the grant, increase theliabilities on the grant date and the amount of the right on the basis of the best estimate on the basis of the fair valueof the liabilities.On each balance sheet date and settlement date before the settlement of relevant liabilities, the fair value of theliabilities shall be measured and the changes shall be included in the current profit and loss.(2) Modify or terminate the relevant accounting treatment of the share payment planWhen the Company changes the share payment plan, if the modification increases the fair value of the granted equityinstrument, the increase in the acquired services shall be recognized according to the increase in the fair value of theequity instrument. The increase in the fair value of the equity instrument is the difference between the fair value of theequity instrument on the date of amendment before and after the amendment. If the amendment reduces the total fairvalue of share payment or adopts any other way unfavorable to the employee, the accounting for the services obtainedshall be deemed to have never occurred unless the Company cancels part or all of the granted equity instruments.During the waiting period, if the granted equity instrument is cancelled, the Company will treat the cancellation of thegranted equity instrument as an accelerated exercise of right, immediately record the amount recognized during theremaining waiting period into the current profit and loss, and recognize the capital reserves. If the employee or otherparty can choose to meet the non-viable conditions but not within the waiting period, the company will cancel them asthe interest granting instrument.(3) Accounting for share payment transactions involving the Company and shareholders or actual controllers of theCompanyWhere one of the settlement enterprises of the Company and the enterprise receiving services is outside the Company,and one of the other is outside the Company, accounting treatment shall be made in the consolidated financialstatements of the Company in accordance with the following provisions:① If the settlement enterprise settles with its own equity instrument, the share payment transaction shall be treated asshare payment for equity settlement; in addition, as share payment for cash settlement.If the settlement enterprise is an investor of the service enterprise, it shall be recognized as a long-term equityinvestment in the service enterprise according to the fair value of the equity instrument on the grant date, and thecapital reserves (other capital reserves) or liabilities shall be recognized.② If the service enterprise has no settlement obligation or the employee is its own equity instrument, the sharepayment transaction shall be treated as the share payment for equity settlement; if the service enterprise has thesettlement obligation and is not its own equity instrument, the share payment transaction shall be treated as the sharepayment for cash settlement.For the share payment transaction between the enterprises in the Company, and the settlement enterprise is not thesame enterprise, the confirmation and measurement of the share payment transaction in the individual financialstatements of the service enterprise and the settlement enterprise shall be handled in accordance with the above Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.principles.(1) The distinction between perpetual bonds and preferred sharesFinancial instruments such as perpetual bonds and preferred shares issued by the Company, which meet the followingconditions:① The financial instrument does not include the contractual obligation to deliver cash or other financial assets toother parties, or to exchange financial assets or financial liabilities with other parties under potentially adverseconditions;② If the financial instrument is required to be settled, if the financial instrument is not derivative, the contractualobligation of delivering a derivative, the Company can only settle the financial instrument by exchanging a fixedamount of cash or other financial assets in a fixed amount of its own equity instruments.Except for financial instruments that can be classified as equity instruments under the above conditions, otherfinancial instruments issued by the Company shall be classified as financial liabilities.If the financial instruments issued by the Company are compound financial instruments, they shall be recognized as aliability according to the fair value of the liability component, and shall be recognized as "other equity instruments"according to the amount actually received after deducting the fair value of the liability component. The transactioncosts incurred in the issuance of compound financial instruments shall be apportioned between the liabilitycomponents and the equity component according to their respective proportion to the total issuance price.(2) Accounting methods for perpetual debt and preferred shares, etcFinancial instruments such as perpetual debt or preferred shares, or financial instruments classified as financialliabilities, whose related interest, dividends (or dividends), gains or losses, and gains or losses arising from redemptionor refinancing, are included in the current profit and loss, except for the borrowing expenses meeting thecapitalization conditions (see Note IV and 18 "borrowing expenses").For financial instruments such as perpetual bonds and preferred shares classified as equity instruments, upon issuance(including refinancing), repurchase, sale or cancellation, the Company shall be treated as a change in equity, and therelevant transaction costs shall also be deducted from the equity. The Company treats the distribution of the equityinstrument holder as a profit distribution.The Company does not recognize the change in the fair value of the equity instruments.Accounting policies used for revenue recognition and measurement(1) Revenue recognition principleWhen the contract with the customer meets both of the following conditions, revenue is recognized when thecustomer obtains control of the relevant goods:① The parties have approved the contract and undertake to perform their respective obligations; Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.② The contract specifies the rights and obligations of the parties related to the transfer of the goods or servicesprovided;③ The contract has a clear payment clause related to the transferred goods;④ The contract has commercial substance, that is, the performance of the contract will change the risk, timedistribution or amount of the Company"s future cash flow;⑤ A consideration entitled to for the transfer of goods to a customer is likely to be recovered.Assess the contract on the start date of the contract, identify the individual performance obligations contained in thecontract, and share the transaction price to each individual performance obligation in relative proportion to theindividual selling price of the goods promised by each individual performance obligation. The influence of variableconsideration, significant financing components existing in the contract, non-cash consideration, payable customerconsideration and other factors are considered in determining the transaction price. Then determine whether theindividual performance obligation should be performed within a certain period or at a certain point, and recognize theincome respectively when performing each individual performance obligation.If one of the following conditions is met, it shall be performed within a certain period; otherwise, or at a certain point:time;and the enterprise has the right to collect money for the accumulated performance that has been completed during thewhole contract period.For the performance obligations performed within a certain period of time, the revenue shall be recognized accordingto the performance progress during that period. The performance progress shall be determined by the input methodor the output method according to the nature of the transferred goods. If the performance progress cannot bereasonably determined and the cost incurred is expected to be compensated, the income shall be recognized accordingto the amount of the cost incurred until the performance progress can be reasonably determined.If one of the above conditions is not met, the revenue will be apportioned to the transaction price of the individualperformance obligation at the point when the customer obtains control of the relevant goods. When determiningwhether the customer has acquired control of the commodity:<1> The enterprise has the right to current payment for the goods, that is, the customer has the obligation of currentpayment for the goods;<2> The enterprise has transferred the legal ownership of the commodity to the customer, that is, the customer hasthe legal ownership of the commodity;<3> The enterprise has transferred the product to the customer, that is, the customer has the physical possession ofthe commodity;<4> The enterprise has transferred the main risks and remuneration in the ownership of the commodity to thecustomer, that is, the customer has acquired the main risks and remuneration in the ownership of the commodity;<5> The customer has accepted the item;<6> Other indications that the customer has acquired control of the goods. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(2) Methods of revenue recognition used by the Company① Revenue recognized by the Company at a point in time in the control over assetsFor the foreign sale of seine fish, the Company uses sales contracts and settlement contracts as the basis, recognizesthe change of ownership based on the date of settlement contracts, and then recognizes revenue accordingly.Most of the Company’s long-line fishing utensil and fishing goods will be transported back to China for sale. Salescontracts and settlement contracts will be used as the basis. The Company recognizes the change of ownership basedon the date of settlement contracts and then recognizes revenue accordingly.Processing of aquatic products for domestic sale by the Company: Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.issues shipment confirmations according to faxed or email orders from domestic clients. The Company delivers goodsbased on shipping notes issued by the sales department and confirmed by the warehouse department. After clientsacknowledge receipt, the Company will recognize revenue.Processing of aquatic products for foreign sale by the Company: After receiving purchase orders from foreign clients,the international trade department will issue export shipment confirmations and arrange the storage and transportdepartment to prepare the goods. The Company will revenue sales revenue based on shipping notes, packing lists,customs declaration forms, and other export documents.② Revenue recognized by the Company by performance period:The Company’s revenue from cold storage: After receiving orders from clients and after the goods are put in storage,the warehouse department will issue warehouse warrants to clients to confirm the specific names, specifications,pieces, weight, and storage dates. After the warehouse warrants are signed by the warehouse manager and confirmedby clients, the Company will recognize revenue by calculating the storage fees based on the actual number of storagedays.(1) Method of determining the amount of assets related to the contract costThe assets related to the contract costs include the contract acquisition costs and the contract performance costs.Contract acquisition cost, that is, if the incremental cost incurred in the contract acquisition is expected to berecovered, it is recognized as an asset as the cost of contract acquisition. Incremental cost refers to the cost that willnot occur without obtaining a contract (such as sales commission, etc.). If the amortization period of the asset doesnot exceed one year, it may be recorded into the current profit and loss at the time of occurrence.Other expenses incurred in the Company to obtain the Contract in addition to the incremental cost expected to berecovered (e. g. travel expenses, bid expenses, bid expenses, and related expenses incurred in preparing the bidmaterials) shall be recorded in the current profits and losses upon occurrence, unless these expenses are clearly borneby the customer.Contract performance cost, that is, the cost incurred in the performance of the contract, which does not fall within thescope of other accounting standards for enterprises other than the Accounting Standards for Business EnterprisesNo.14-Revenue (2017 Revision) and meets the following conditions, is recognized as the contract performance cost asan asset: Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.① This cost is directly related to a current or expected acquired contract, including direct labor, direct materials,manufacturing costs (or similar costs), costs clearly borne by the Customer, and other costs incurred only because ofthe Contract;② This cost increases the future resources of the enterprise to fulfill its performance obligations;③ This cost is expected to be recoverable.(2) Amortization of assets related to the contract costsAssets related to the contract cost are amortized on the same basis as the recognition of the asset and recorded intothe current profit and loss.(3) Impairment of assets relating to the contract costsWhen determining the impairment of assets related to the contract cost, firstly determine the impairment loss of otherassets recognized in accordance with other relevant business accounting standards; Then, if the book value is higherthan the difference of Item ① minus Item ② , the excess part shall be deducted and recognized as the assetimpairment loss:① The remaining consideration expected to obtain due to the transfer of the goods related to the asset;② Estimated estimated for the transfer of the related goods.During the period before the impairment factors after changes, make the enterprise after the item ① minus the ② ofthe difference higher than the asset book value, back to the original asset impairment provision, and included in thecurrent profits and losses, but the book value of the assets should not exceed the assumed not provision forimpairment of the assets in the book value.(1) A lease is a contract in which the Company has transferred or acquired the right to control one or more use ofidentified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract,the Company evaluates whether the contract is a lease or contains a lease.(2) Judgment basis of government subsidies and accounting treatment methods related to assetsThe government subsidies related to assets refers to the government subsidies obtained by the Company for purchaseand construction or otherwise forming long-term assets.Government subsidies related to assets shall be recognized as deferred income. Where government subsidies related toassets are recognized as deferred income, they shall be recorded into profits and losses in reasonable and systematicways within the service life of the relevant assets. The government subsidies measured in accordance with the nominalamount shall be directly recorded into the current profit and loss.If the relevant assets are sold, transferred, scrapped or damaged before the end of their service life, the undistributedbalance of the relevant deferred income shall be transferred into the profit and loss of the current period of assetdisposal.The government subsidies related to the daily activities of the Company shall be included in other profits according tothe essence of the economic business. The government subsidies unrelated to the daily activities of the Company shallbe included in the non-operating income and expenditure. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(3) The judgment basis and accounting treatment method of government subsidies related to incomeRevenue-related government subsidies refer to government subsidies other than those related to assets.For the government subsidies of comprehensive projects, the Company needs to be decomposed into asset-relatedparts and earnings-related parts for accounting treatment separately; if it is difficult to distinguish, it shall be classifiedas government subsidies related to income.If government subsidies related to earnings are used to compensate the related expenses or losses of the enterprise inthe future period, they shall be recognized as deferred income and included in the current profits and losses in therelated costs or losses in the period to compensate the related expenses or losses incurred by the enterprise, whichshall be directly recorded in the current profits and losses.The government subsidies related to the daily activities of the Company shall be included in other profits according tothe essence of the economic business. The government subsidies unrelated to the daily activities of the Company shallbe included in the non-operating income and expenditure.(4) The time of recognition of government subsidiesWhere the government subsidies are monetary assets, they shall be measured at the amount received. The governmentsubsidy, measured according to the receivable amount, shall be confirmed at the end of the period by meeting therelevant conditions of the financial support policy, if the government subsidy is non-monetary assets, the governmentsubsidy shall be confirmed according to the ownership risk and remuneration transfer of the non-monetary assets.Where non-monetary assets shall be measured at fair value; if the fair value cannot be obtained reliably, they shall bemeasured at nominal amount.When the recognized government subsidies need to be returned, if there is a balance of relevant deferred income, thebook balance of relevant deferred income shall be written down, and the excess part shall be included into the currentprofit and loss; if there is no relevant deferred income, it shall be directly recorded in the current profit and loss.Income tax is accounted by the balance sheet debt method. On the balance sheet date, analyze and compare the bookvalue of assets and liabilities and their tax basis. If there is a difference between the two, recognize the deferredincome tax assets, deferred income tax liabilities and the corresponding deferred income tax expenses (or earnings).On the basis of the calculation and determination of the current income tax (i. e., income tax payable for the currentperiod) and deferred income tax expenses (or income), the sum of the two is recognized as the income tax expenses(or income) in the income statement, but excluding the income tax impact of transactions or matters directly includedin the owner"s equity.Review the book value of deferred income tax assets. If it is likely that insufficient taxable income amount may beobtained to offset the benefits of the deferred income tax assets, the book value of the deferred income tax assets shallbe written down.A lease is a contract in which the Company has transferred or acquired the right to control one or more use ofidentified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract,the Company evaluates whether the contract is a lease or contains a lease. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(1) The Company acts as lesseeThe categories of leased assets of the Company are mainly office buildings and cold storage.① Initial measurementOn the beginning date of the lease term, the Company shall recognize the right to use the lease assets as the use rightassets during the lease term, and recognize the present value of the outstanding lease payment as lease liabilities,except for short-term lease and low-value asset lease. When calculating the present value of the lease payment, theCompany uses the lease interest rate as the discount rate; if the lease interest rate cannot be determined, the lesseeincremental borrowing rate shall be used as the discount rate.② Follow-up measurementIf the company can reasonably determine the ownership of the leased assets at the time of the expiration of the leaseterm, the depreciation shall be withdrawn within the remaining useful life of the leased assets. If it is impossible toreasonably determine that the ownership of the lease asset can be acquired at the expiration of the lease term, thedepreciation shall be deducted within the shorter period of the lease term and the remaining service life of the leasedasset.See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and impairment provision methodof the use assets.For the lease liabilities, the Company shall calculate the interest expenses for each period during the lease term at thefixed periodic interest rate, which is included in the current profit and loss or the relevant asset costs. Variable leasepayments not included in the measurement of lease liabilities are recorded into current profit and loss or related assetcosts upon actual occurrence.After the start of the lease term, when the substantial fixed payment changes, the expected payable amount changes,the index or ratio used to determine the lease payment changes, the purchase option, the renewal option, or the actualexercise situation changes, the lease payment, and adjust the book value of the use assets accordingly. If the bookvalue of the use right assets has been reduced to zero, but the lease liabilities still need to be further reduced, theremaining amount shall be included in the current profit and loss.③ Short-term lease and low-value asset leasingFor short-term lease (in the lease start day lease not more than 12 months) and low value asset lease, the company tosimplify processing method, do not confirm the use of assets and lease liabilities, and during the lease periodaccording to the line method or other system reasonable lease payments into the relevant asset cost or current profitand loss.④ Lease obligationOn the beginning date of the lease term, the Company recognizes the present value of the outstanding lease paymentas a lease liability. When calculating the present value of the lease payment, the lease interest rate shall be used as the Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.discount rate. If the interest rate of the lease cannot be determined, the company"s incremental borrowing rate shall beused as the discount rate. The difference between the lease payment and its present value shall be regarded as theunidentified financing fee, and the interest expense shall be recognized during the lease period at the discount rate ofthe present value of the lease payment and included in the current profit and loss. Variable lease payments notincluded in the measurement of lease liabilities shall be recorded into the current profit and loss upon actualoccurrence.After the commencement of the lease term, when the substantially fixed payment amount changes, the expectedpayable amount changes, the index or ratio of the lease payment amount changes, the result of the assessment or thechange of the lease payment amount, if the book value of the asset has been reduced to zero, but the lease liabilitiesstill need to be further reduced, the remaining amount shall be included in the current profit and loss.(2) The Company acts as lessorOn the commencement date of the lease, the Company divides the lease into financial lease and operating lease basedon the substance of the transaction. A finance lease is a lease that substantially transfers almost all of the risks andrewards associated with the ownership of the leased assets. Operating lease refers to a lease other than a financial lease.① Operating leaseThe Company adopts the straight-line method to confirm the lease collection amount of the operating lease as therental income of each period during the lease term. Variable lease payments related to the operating lease and notincluded in the lease collection amount shall be included in the current profit and loss upon actual occurrence.② The Company’s revenue applicable to the lease standardsThe Company’s revenue from vessel leases: Shandong Zhonglu Aquaculture Shipping Co., Ltd. and HabitatInternational Corporation lease their vessels by time charter. The Company leases vessels equipped with operatingstaff to others for certain periods. During the lease term, the ships are subject to the lessees’ dispatch. Regardless ofwhether they run any business using the vessels, the Company charges lease fees to them and bears any fixed costsincurred (such as staff salaries, maintenance costs, etc.). During the lease term, the fees are settled on a regular basisbetween the Company and its clients. The Company recognizes revenue based on the number of lease days as agreedupon with the clients.The Company’s property and other lease revenue: After entering into a lease contract with a client, the Companycharges lease fees based on the lease area and the contractual unit price to the lessee and bears any fixed costs (such asstaff salaries, maintenance costs, etc.). During the lease term, the fees are settled on a regular basis between theCompany and the client. The Company recognizes revenue based on the lease period.(1) Production safety expendituresIn November 2022, the Ministry of Finance and the Ministry of Emergency Management issued the ManagementMeasures for the Withdrawal and Utilization of Production Safety Expenditures in Enterprise (CZ [2022] No. 136),and it was implemented on, and as of, the date of issue. At the same time, the Management Measures for theWithdrawal and Utilization of Production Safety Expenditures in Enterprises (CQ [2012] No. 16) was superseded. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(2) Debt restructuringWhen the Company participates in the debt restructuring as a creditor, and pays off the debt with assets or turns thedebt into equity instruments for debt restructuring, it shall be confirmed when the relevant assets meet its definitionand confirmation conditions. If the debt-offset assets are financial assets, see Note IV, 10 and financial instruments; ifthe debt-offset assets are non-financial assets, the initial measured amount is the sum of the fair value of the waivedclaims and other directly attributable costs. The difference between the fair value of the abandoned claim and thebook value shall be included in the current profit and loss. If the debt is restructured by means of modifying otherterms, the Company shall, according to the substantive modification of the contract, judge whether the originalcreditor"s right to terminate the confirmation, and confirm a new creditor"s right according to the revised terms, orrecalculate the book balance of the creditor"s right.When the company participates in debt restructuring, debt restructuring with assets or converting debt into equityinstruments, terminate the relevant assets and the liquidated liabilities meet the conditions for termination ofconfirmation, and measure the fair value of the equity instruments (according to the fair value of the liquidated debtwhen the fair value cannot be estimated reliably). The difference between the book value of the paid debts and thebook value of the transferred assets (or the recognized amount of the equity instruments) shall be recorded in thecurrent profit and loss.If the debt is restructured by modifying other terms, the Company shall, according to the substantive modification ofthe contract, confirm a new debt in accordance with the revised terms, or recalculate the book balance of the debt.For the exemption of the debt restructuring, the recognition can only be terminated if the Company no longer havethe current obligation to repay the debt restructuring.(1) Important accounting policy changes① The Company started to implement the No. 17 of the Accounting Standards for Business EnterprisesInterpretation “on the division between current and non-current liabilities” in 2024. The accounting policy changehas no effect on the Company’s financial statements.② The Company started to implement the Interpretation of No. 17 of the Accounting Standards for BusinessEnterprises Interpretation “ on accounting treatment for sale and leaseback transactions ” in 2024 and maderetrospective application to the sale and leaseback transactions conducted after January 1, 2021. The accounting policychange has no effect on the Company’s financial statements.③ The Company started to implement the No. 18 of the Accounting Standards for Business EnterprisesInterpretation “on accounting treatment for warranty-type quality assurance that does not belong to the individualperformance.” The warranty-type quality assurance that does not belong to the individual performance accrued bythe Company was originally recognized in “selling expenses.” In accordance with Article 2 of the No. 18 ASBEInterpretation, it is now recognized in “cost of sales” and “other operating costs,” which is presented in the“operating costs” in the income statement. The accounting policy change has no effect on the Company’s financialstatements. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(2) Changes in important accounting estimatesNone.In the process of applying accounting policies, the company, due to the internal uncertainty of business activities,needs to judge, estimate and assume the book value of the statement items that cannot be accurately measured. Thesejudgments, estimates and assumptions are based on the past history of the company"s management and on consideringother relevant factors. These judgments, estimates and assumptions affect the reported amount of revenues, expenses,assets and liabilities and the disclosure of contingent liabilities on the balance sheet date. However, the actual results ofthe uncertainty of these estimates may differ from the current estimates of the Company"s management, which in turnresults in a significant adjustment of the carrying amount of the assets or liabilities affected in the future.The Company shall periodically review the aforementioned judgments, estimates and assumptions on the basis of thechange, the accounting estimates shall be confirmed in the current period; and the current period, the impact shall beconfirmed in the current period and the future period.On the balance sheet date, the Company shall judge, estimate and assume the amount of the financial statement asfollows:(1) Revenue recognitionAs stated in Note IV, 27, "revenue", the following significant accounting judgments and estimates are involved interms of revenue recognition:Estimating the recovery of the consideration entitled to for the transfer of goods to the Customer:Enterprises mainly rely on past experience and work to make judgments, these major judgments and estimatedchanges may have an impact on the operating income, operating costs, and profit and loss during the period of thechange, and may constitute a significant impact.(2) Significant accounting judgments and estimates related to leasing① Identification of leasesWhen identifying whether a contract is a lease or includes a lease, the Company needs to evaluate whether anidentified asset exists, and the Client controls the right to use the asset for a certain period. In the appraisal, the natureof the asset, the material replacement right, and whether the client is entitled to almost all the financial benefits arisingfrom using the asset during the period and to dominate the use of the asset are considered.② Classification of leasesWhen the Company, as a lessor, classifies the lease into operating lease and financial lease. In the classification, themanagement needs to make an analysis and judgment on whether all the risks and rewards related to the ownership ofthe leased assets have been substantially transferred to the lessee.③ Lease obligationWhen the Company is the lessee, the lease liabilities are initially measured at the present value of the lease payments Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.outstanding on the beginning date of the lease term. When measuring the present value of the lease payment, theCompany estimates the discount rate used and the lease term of the lease contract with a renewal option ortermination option. In evaluating the lease term, the Company considers all relevant facts and circumstances related tothe economic benefits of exercising the option, including the expected changes in the facts and circumstances betweenthe beginning of the lease term and the exercise date of the option. Different judgments and estimates may affect therecognition of lease liabilities and tenure assets, and will affect the profits and losses of the subsequent period.(3) Impairment of financial instrumentsThe Company uses the expected credit loss model to evaluate the impairment of financial instruments, and applicationof the expected credit loss model requires the company to make significant judgments and estimates, and to considerall reasonable and grounded information, including forward-looking information. When making such judgments andestimates, the Company deduces the expected changes in the debtor"s credit risk based on the historical repaymentdata combined with economic policies, macroeconomic indicators, industry risks and other factors.(4) Reserve for inventory depreciationAccording to the inventory accounting policy, the company measures the lower cost and the net realizable value, andsets aside the inventory depreciation provision for the cost that is higher than the net realizable value and the old andunsalable inventory. The impairment of inventory to net realizable value is based on the sale of inventory and its netrealizable value. The appraisal of inventory impairment requires the management to make a judgment and estimate onthe basis of obtaining conclusive evidence and considering the purpose of holding the inventory and the impact ofmatters after the balance sheet date. The difference between the actual result and the original estimate will affect thewithdrawal or reversal of the book value of the inventory and the inventory depreciation provision during theestimated change period.(5) Fair value of the financial instrumentsFor financial instruments that do not have an active trading market, the Company determines its fair value throughvarious valuation methods. These valuation methods include discounted cash flow model analysis, etc. At thevaluation, the Company estimates the future cash flow, credit risk, market volatility and correlation, and selects theappropriate discount rate. These relevant assumptions are uncertain, and their changes can have an impact on the fairvalue of the financial instruments.(6) Long-term asset impairment provisionOn the balance sheet date, the Company judged the possible impairment of non-current assets except the financialassets. For the intangible assets with uncertain service life, in addition to the annual impairment test, the impairmenttest is also conducted when there are signs of impairment. Other non-current assets other than financial assets shall betested for impairment when there is evidence that their book amount is not recoverable.When the book value of an asset or asset group is higher than the recoverable amount, that is, the net value minus thedisposal expense and the present value of the expected future cash flow, the impairment has occurred.The net fair value minus the disposal expense is determined by referring to the sales agreement price of a similar assetin fair trading or the observable market price, minus the incremental cost that may be directly attributable to thedisposal of the asset. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.When predicting the present value of future cash flows, it is necessary to make significant judgments on the output,selling price, related operating costs and the discount rate used in calculating the present value. In estimating therecoverable amount, the Company will use all relevant information available, including projections of production,selling prices and associated operating costs based on reasonable and supportive assumptions.(7) Depreciation and amortizationAfter considering the residual value of the investment real estate, fixed assets and intangible assets, the Company shallmake depreciation and amortization according to the straight-line method. The Company periodically reviews theservice life to determine the amount of depreciation and amortization expense that will be included in each reportingperiod. The service life is determined by the Company based on past experience with similar assets and combined withexpected technical updates. If previous estimates have changed significantly, depreciation and amortization chargeswill be adjusted in the future period.(8) Deferred income tax assetsWithin the limits of potentially sufficient taxable profits to offset losses, the Company recognizes deferred income taxassets for all unused tax losses. This requires the management of the company to use a lot of judgment to estimate thetime and amount of future taxable profits, and combine the tax planning strategy to determine the amount of deferredincome tax assets that should be recognized.(9) Income taxIn the normal business activities of the company, there are some uncertainties in the final tax treatment andcalculation of some transactions. Whether some items can be itemized before tax requires the examination andapproval of the competent tax authorities. If the final determination of these tax matters varies from the originalestimated amount, the difference will affect the current income tax and deferred income tax during the finaldetermination period.(10) Internal retirement benefits and supplementary retirement benefitsThe amount of the company"s internal retirement benefits and supplementary retirement benefits expenses andliabilities is determined according to various assumptions. These assumptions include the discount rate, the averagegrowth rate of medical expenses, the growth rate of subsidies for retired and retired personnel, and other factors.Differences in actual results and assumptions will be immediately recognized and charged for the current year.Although the management believes that reasonable assumptions have been adopted, the change in the actualexperience value and the assumptions will still affect the expenses and liabilities of the Company"s internal retirementbenefits and supplementary retirement benefits.The Company determines its operating segments based on internal organizational structure, managementrequirements, and internal reporting systems, and identifies reportable segments on the basis of operating segments.The financial information of each reportable segment, including revenue, cost of sales, total assets, and total liabilities,is disclosed in the notes to the financial statements. If the Company is unable to disclose the total assets or total Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.liabilities of each reportable segment, the reasons shall be provided. An operating segment refers to a component ofthe Company that meets all of the following conditions:VI.TaxTax Taxation base Tax rateVAT Output tax minus the deductible input tax 13%， 9%，6%， 5%， exemptedUrban maintenance & construction tax Circulation tax amount payable 7%Business income taxes taxable income Exempted，25%， 20%， 8%Explanation of enterprise income tax rate for tax entities with different ratesName of tax entity Income tax rateShandong Zhonglu Oceanic Fisheries Co., LTD Pelagic fishing is exempted, the rest will be taxed at 25%Shandong Zhonglu Haiyan Oceanic Fisheries Co., LTD exemptedAFRICA STAR FISHERIES LIMITED According to the local regulations of Ghana, the export part is taxed at 8%, and the domestic part is taxed at 25%HABITAT INTERNATIONAL CORPORATION exemptedLAIF FISHERIES CO.LTD 25%ZHONG GHA FOODS COMP ANY LIMITED 25%YAW ADDO FISHERIES COMPANY LIMTED According to the local regulations of Ghana, the export part is taxed at 8%, and the domestic part is taxed at 25%Shandong Zhonglu Aquatic Marine Co., LTD 20%Shandong Zhonglu Oceanic Refrigeration Co., LTD The part of the aquatic product processing industry is exempted, and other parts are 25%Shandong Zhonglu Oceanic (Yantai) Food Co., LTD The part of the aquatic product processing industry is exempted, and other parts are 25%Zhonglu Oceanic (Qingdao) Industrial Investment and 25%Development Co., LTDTax Preferences and Approval DocumentsIn accordance with Item 1 of Article 15 of the Provisional Regulations of the People’s Republic of China on Value-Added Tax, Item 1 of Article 35 of the Implementation Rules of the Provisional Regulations of the People’s Republicof China on Value-Added Tax, and the notice of the Ministry of Finance and the State Taxation Administration onissuing the Notes to the Scope of Taxation for Agricultural Products through CSZ [1995] No. 52, the sales revenue ofthe Company and its subsidiaries from long-range fishing falls within the scope of the aquaculture industry as definedin the foregoing provisions, and hence, it is entitled to the value-added tax preference.In accordance with the provisions of the Notice on the Comprehensive Roll-out of Business Tax to Value Added TaxTransformation Pilot Program (No. 36 of 2016), the value-added tax is exempt for the direct or indirect internationalfreight forwarding services provided by taxpayers. Shandong Zhonglu Aquaculture Shipping Co., Ltd., a subsidiary ofthe Company, is exempt from the value-added tax for the relevant sales revenue it has gained.According to the enterprise income tax law of the People"s Republic of China (the President of the People"s Republic Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.of China order no. 63), the State Council of the People"s Republic of China order no. 512, the implementation of thelaw of the People"s Republic of China, the Ministry of Finance, state administration of taxation on enjoy preferentialpolicies of enterprise income tax of agricultural products (try out) notice (tax [2008] no. 149), the Ministry of Finance,the state administration of taxation on enjoy preferential enterprise income tax of agricultural products about thescope of supplementary notice (Fiscal and Taxation [2011] No.26) and the relevant provisions of the Announcementof the State Administration of Taxation on the Implementation of Preferential Enterprise Income Tax Treatment forAgriculture, Forestry, Animal Husbandry and Fishery Projects (Announcement of the State Administration ofTaxation No.48,2011), The company carries out the primary processing of agricultural products and the entrustedprimary processing of agricultural products, The processing fees it charges, Can be handled according to the duty-freeitems of the primary processing of agricultural products. The company engaged in ocean fishing business and primaryprocessing of agricultural products income is exempted from enterprise income tax. The income obtained from thecompany except ocean fishing and primary processing of agricultural products shall be paid at the rate of 25%.According to the announcement of the Ministry of Finance and the State Administration of Taxation on furtherimplementing the preferential income tax policies for small and micro enterprises (Announcement No. 13 of 2022 ofthe Ministry of Finance and the State Administration of Taxation) and the announcement on the preferential incometax policies for small and micro enterprises and individual industrial and commercial households (Announcement No.not exceeding 3 million yuan shall be included in the taxable income at a reduced rate of 25%, and the taxable incomeshall be included at 20% .The subsidiary Shandong Zhonglu Aquatic Products Shipping Co., Ltd. shall apply the taxpreference.VII. Notes to consolidated financial statement items Unit: RMB Item Closing balance Opening balanceCash on hand 550,558.13 615,541.90Bank deposit 225,001,662.21 283,690,747.60Other monetary funds 7,800,000.00 28,789,884.20Total 233,352,220.34 313,096,173.70 Including: total amount of fundsdeposited overseasNote: Funds kept overseas represent cash and bank deposits of foreign subsidiaries; other cash and cash equivalents are guaranteedeposits for notes and letters of guarantee.(1) Notes receivable that have been endorsed or discounted by the company at the end of the period buthave not yet matured on the balance sheet date Unit: RMB Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Item Amount of termination recognition at the Amount of non-termination recognition end of the period at the end of the periodBanker"s acceptance 15,000,000.00Total 15,000,000.00(1) Disclosure by aging Unit: RMB Aging Closing book balance Opening book balanceWithin 1 year (included) 43,476,833.16 81,084,925.29More than 3 years 6,625,052.92 6,501,141.07Total 52,203,517.64 89,147,260.86(2) Disclosure by bad debt accrual Unit: RMB Closing balance Opening balanceCategor Book balance Bad debt provision Book balance Bad debt provision y Book Book Proporti Accrual value Proporti Accrual value Amount Amount Amount Amount on ratio on ratioAmongthem:Accountsreceivableaccrued 100.00% 18.28% 100.00% 12.53%for baddebts bycombinationAmongthem:Agingcombina 100.00% 18.28% 100.00% 12.53%tion 17.64 0.97 26.67 60.86 46.24 14.62Total 100.00% 18.28% 100.00% 12.53%Category name of bad debt provision accrued by group: Aging combination Unit: RMB Closing balance Name Book balance Bad debt provision Accrual ratio Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Accounts receivable accruedfor bad debts by combinationTotal 52,203,517.64 9,543,390.97If the bad debt provision of accounts receivable is made based on the general model of expected credit losses:□Applicable ? Not applicable(3) Bad debt provisions accrued, recovered or reversed in the current periodAccrual for bad debt provisions in the current period: Unit: RMB Change amount of current period Opening Category Recovery or Closing balance balance Accrual Write off Others reversalBad debts ofaccounts 11,173,546.24 -1,585,506.41 8,000.00 -36,648.86 9,543,390.97receivableTotal 11,173,546.24 -1,585,506.41 8,000.00 -36,648.86 9,543,390.97(4)Top five accounts receivable and contract assets in terms of closing balance summarized by debtorAccounts receivable of the top five closing balance collected by the debtor Unit: RMB Closing balance of Proportion in the bad debt provision Closing balance of total closing Closing balance for accounts Closing balance of accounts balance of Name of entity accounts receivable and contract assets receivable and accounts receivable impairment contract assets receivable and provision for contract assets contract assetsA 6,053,727.40 6,053,727.40 11.60% 302,686.37B 3,600,962.12 3,600,962.12 6.90% 3,600,962.12C 3,288,330.00 3,288,330.00 6.30% 164,416.50D 3,166,977.30 3,166,977.30 6.07% 158,348.87E 3,016,497.20 3,016,497.20 5.78% 150,824.86Total 19,126,494.02 19,126,494.02 36.65% 4,377,238.72 Unit: RMB Item Closing balance Opening balanceOther receivables 89,554,044.25 105,905,380.86Total 89,554,044.25 105,905,380.86(1) Other receivables Unit: RMB Nature of payment Closing book balance Opening book balanceEarnest money 383,897.69 2,085,454.62 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Dealings and others 111,184,544.62 128,550,878.97Total 111,568,442.31 130,636,333.59 Unit: RMB Aging Closing book balance Opening book balanceWithin 1 year (included) 71,874,480.35 71,885,732.81More than 3 years 4,668,681.64 4,702,363.09Total 111,568,442.31 130,636,333.59? Applicable □Not applicable Unit: RMB Closing balance Opening balanceCategor Book balance Bad debt provision Book balance Bad debt provision y Book Book Proporti Accrual value Proporti Accrual value Amount Amount Amount Amount on ratio on ratio Among them:Bad debtprovision 100.00% 19.73% 100.00% 18.93%accruedby group Among them:Agingcombina 100.00% 19.73% 100.00% 18.93%tionTotal 100.00% 19.73% 100.00% 18.93%Category name of bad debt provision accrued by group: Aging combination Unit: RMB Closing balance Name Book balance Bad debt provision Accrual ratioBad debt provision accruedby groupTotal 111,568,442.31 22,014,398.06Accrual of bad debt provision by general model of expected credit loss: Unit: RMB Stage 1 Stage 2 Stage 3 Bad debt provision Expected credit loss for Expected credit loss for Total Expected credit loss for the entire duration (no the entire duration the next 12 months credit impairment has (credit impairment has Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. occurred) occurred)Balance on January 1,Balance on January 1,Accrual of current -2,659,173.84 -33,681.46 -2,692,855.30periodOther changes -23,699.37 -23,699.37Balance on June 30,Changes in book balance with significant changes in loss reserves during the current period□Applicable ? Not applicableProvision of bad debt allowance during the current period: Unit: RMB Change amount of current period Opening Category Recovery or Closing balance balance Accrual Write-offs Others reversalBad debts ofother 24,730,952.73 -2,692,855.30 -23,699.37 22,014,398.06receivablesTotal 24,730,952.73 -2,692,855.30 -23,699.37 22,014,398.06 Unit: RMB Proportion to total Closing balance Name of entity Nature of payment Closing balance Aging closing balance of of bad debt other receivables provision Laoshan District Agriculture and 6 months to 1 year, Government grants 88,287,931.00 79.13% 15,297,913.30 Rural Affairs 1 to 2 years Bureau, Qingdao Advances for Zhang Zhicheng 1,133,589.42 0 to 3 years 1.02% 363,144.84 medical treatment Shandong State- owned Assets Trusteeship fee 900,000.00 0 to 6 months 0.81% 45,000.00 Investment Holding Co., Ltd. MRL LIMITED Earnest money 886,275.00 2 to 3 years 0.79% 443,137.50 Shandong Platform operation Tianzong Culture 299,000.00 More than 3 years 0.27% 299,000.00 payment Media Co., Ltd. Total 91,506,795.42 82.02% 16,448,195.64 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(1) Presentation of advance payments by aging Unit: RMB Closing balance Opening balance Aging Amount Proportion Amount ProportionWithin 1 year 23,114,749.73 98.53% 17,319,421.36 98.27%More than 3 years 2.81 0.00%Total 23,460,418.74 17,625,072.87(2) Top five advance payments in terms of closing balance summarized by payee Relationship with the Proportion in the total Advance payment Reasons for non-Company name Closing balance Group amount time settlement Not reached the A Non-affiliate 8,292,177.00 35.35% 2026 settlement period Not yet fully B Non-affiliate 5,662,470.97 24.14% 2026 amortized Not reached the C Non-affiliate 3,526,011.00 15.03% 2026 settlement period Not yet fully D Non-affiliate 2,181,600.00 9.30% 2026 amortized Not yet fully E Non-affiliate 2,088,035.75 8.90% 2026 amortized Total 21,750,294.72 92.71%Does the company need to comply with disclosure requirements in the real estate industryNo(1) Category of inventories Unit: RMB Closing balance Opening balance Inventory Inventory falling price falling price reserve or reserve or Item contract contract Book balance Book value Book balance Book value performance performance cost cost impairment impairment provision provisionRaw material 204,858,288.96 3,791,269.75 201,067,019.21 188,879,786.63 5,166,031.66 183,713,754.97Commodities instock Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.TurnovermaterialsContractperformance 8,995,613.65 8,995,613.65 5,785,199.65 5,785,199.65costLow valueconsumablesTotal 468,002,080.45 9,686,181.15 458,315,899.30 408,809,417.25 26,903,496.27 381,905,920.98(2) Inventory falling price reserves and contract performance cost impairment provisions Unit: RMB Increased amount in the current Decreased amount in the current Opening period period Item Closing balance balance Reversal or Accrual Others Others resaleRaw materials 5,166,031.66 1,374,761.91 3,791,269.75Commodities instockTotal 26,903,496.27 2,039,274.87 19,256,589.99 9,686,181.15 Unit: RMB Item Closing balance Opening balanceInput tax amount to be deducted forvalue-added taxAdvance payment of income taxes 168,508.42 167,437.36Prepaid other taxes 10,993.29 11,530.75Total 20,300,693.58 28,152,443.26 Unit: RMB Increase/decrease in current period Invest Openi ment Closin Openi ng profit Other Declar Closin g ng balanc and compr ing the Accrua g balancInveste Additi Reduci loss ehensi Other distrib l of balanc e of balanc e of d onal ng recogn ve equity ution impair e impair Others e impair entity invest invest ized incom change of cash ment (book ment (book ment value) provisi ment ment under e s divide provisi value) provisi on the adjust nds or on on equity ments profits metho dI.Joint ventureII.Associated enterpriseJinan 441,89 - 239,98 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Qinzhe 2.08 201,90 7.08n Food 5.00TechnologyCo.,Ltd.Subtot 441,89 239,98al 2.08 7.08Total 201,90Recoverable amount to be determined according to the net amount of fair value after deducting disposal expenses□Applicable ? Not applicableRecoverable amount to be determined according to the present value of estimated future cash flows□Applicable ? Not applicable(1) Investment real estate using cost measurement model? Applicable □Not applicable Unit: RMB Construction in Item House and building Land use right Total progressI. Original book valueamount in currentperiod(1) Outsourcing(2)Transferred frominventory, fixed assets,and construction inprogress(3)Increase in businessmergeramount(1)DisposalOther transfers outII.Accumulateddepreciation andamortization Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.amount in currentperiod (1)Accrual oramortizationamount (1)Disposal (2)Othertransfers outIII. Impairmentprovisionamount in the currentperiod Accrualamount (1)Disposal (2)Othertransfers outIV.Book valueRecoverable amount to be determined according to the net amount of fair value after deducting disposal expenses□Applicable ? Not applicableRecoverable amount to be determined according to the present value of estimated future cash flows□Applicable ? Not applicable(2) Investment property measured at fair value□Applicable ? Not applicable(3) Investment real estate without obtaining property ownership certificate Unit: RMB Reason for not completing the property Item Book value rights certificateHousing and buildings 24,107,154.16 See Note VII, 10(3) Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Unit: RMB Item Closing balance Opening balanceFixed assets 893,074,353.16 927,820,225.94Total 893,074,353.16 927,820,225.94(1) Fixed assets Unit: RMB Furniture and Houses and Machines and Transportation Item Ships and nets office Total buildings equipment equipment equipmentI.Original bookvalue:balance 71 11amount in the 12,612,913.69 43,075.22 111,121.65 12,767,110.56current period(1)Purchase 12,612,913.69 43,075.22 111,121.65 12,767,110.56(2)Transferredfromconstruction inprogress(3)Increase inbusinessmergerdecrease 33,279.75 17,575,076.47 343,336.21 164,755.91 349,276.85 18,465,725.19amount(1)Disposal orscrappingEffect ofexchange rate 33,279.75 13,931,122.72 25,929.76 164,755.91 28,615.49 14,183,703.63changesbalance 93 48II.Accumulateddepreciationbalanced amount in 2,788,648.93 32,387,129.09 1,640,575.85 138,530.92 250,922.01 37,205,806.80current period (1)Accrual 2,788,648.93 32,387,129.09 1,640,575.85 138,530.92 250,922.01 37,205,806.80decrease Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.amount(1)Disposal orscrappingEffect ofexchange rate 3,954,567.77 2,946.65 90,777.08 31,624.61 4,079,916.11changesbalanceIII.Impairmentprovisionbalanced amount incurrent period (1)Accrualdecreaseamount(1)Disposal orscrappingbalanceIV.Book valuebook valuebook value(2) Information of temporarily idle fixed assets Unit: RMB Original book Accumulated Impairment Item Book value Remark value depreciation provisionMachinery andequipmentVessels 45,999,481.94 32,890,282.86 13,109,199.08(3) Fixed assets without obtaining property ownership certificate Unit: RMB Reason for not obtaining the property Item Book value rights certificateHouses and buildings 1,139,603.09 See explanation Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Other notesAccording to the "Debt Repayment Opinion" signed between our company and Shandong Provincial Aquatic Products GroupCorporation in April 2006, as well as the "Civil Ruling" (2005) LZZ No. 1299 of the People"s Court of Lixia District, Jinan City,Shandong Provincial Aquatic Products Group Corporation offset the debt owed by its office complex building and office supplieslocated at No. 43, Heping Road, Lixia District, Jinan City to Shandong Zhonglu Oceanic Fisheries Co., Ltd. The confirmedoriginal book value of the office complex building is RMB54,223,132.40. As of June 30, 2026, the book value isRMB25,246,757.25 (of which the self-use portion is included in fixed assets and the leased portion is included in investment realestate). The land used for this property is an allocated land, and the property ownership certificate has not yet been obtained.(4) Impairment testing of fixed assets□Applicable ? Not applicable Unit: RMB Item Closing balance Opening balanceConstruction in progress 235,979,273.52 205,135,249.27Total 235,979,273.52 205,135,249.27(1) Construction in progress Unit: RMB Closing balance Opening balance Item Impairment Impairment Book balance Book value Book balance Book value provision provisionAtlanticSeining projectZhongluMarineInnovation 232,880,180.73 232,880,180.73 205,050,797.71 205,050,797.71Industry ParkprojectSeiner overhaul 3,099,092.79 3,099,092.79other 84,451.56 84,451.56Total 240,056,932.07 4,077,658.55 235,979,273.52 209,212,907.82 4,077,658.55 205,135,249.27(2) Changes in important ongoing construction projects for the current period Unit: RMB Amount Proporti Increase Accumu Among transferr on of d Other lated them: Current ed to accumul amount decrease amount Current interestName of Budget fixed ated Project Source Opening in s in the Closing of interest capitaliz item amount assets in project progress of funds balance current current balance interest capitaliz ation the investm period period capitaliz ation rate current ent to ation amount period budgetTuna 51,000 37,539 1,297, 38,837 76.15 65.67 4,863, 655,63 3.45% other Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Tradin ,000.0 ,532.3 730.86 ,263.2 % % 678.84 5.23g 0 9 5CenterNo.5Cold 93.79 90.57 2,353,Storag % % 658.52eTotal 0,000. 9,095. ,030.0 7,125. ,024.9(3) Impairment testing of construction in progress□Applicable ? Not applicable(1) Intangible assets Unit: RMB Non-patent Item Land use right Patent right Computer software Total technologyI.Original bookvaluebalanceamount in currentperiod(1) Purchase(2)Internal R&D (3)Increase in businessmergerdecrease amount (1)DisposalbalanceII. Accumulatedamortizationbalanceamount in current 714,486.42 31,412.46 745,898.88period (1)Accrual 714,486.42 31,412.46 745,898.88 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.decrease amount (1)DisposalbalanceIII.Impairmentprovisionamount in currentperiod (1)Accrualamount (1)DisposalIV.Book valuevaluevalueThe proportion of intangible assets generated from the Company"s internal R&D activities as a percentage of the balance ofintangible assets as of the end of the current period is 0.00%.(2) Impairment testing of intangible assets□Applicable ? Not applicable Unit: RMB Increased amount Amortized amount Other decreased Item Opening balance Closing balance in current period in current period amountDecoration forbusiness premisesDecoration for thetuna science 368,481.24 245,654.22 122,827.02museumVessel dry-dockingTotal 2,575,291.62 2,525,538.31 617,384.80 4,483,445.13 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(1) Deferred income tax assets not offset Unit: RMB Closing balance Opening balance Item Deductible temporary Deductible temporary Deferred tax assets Deferred tax assets difference differenceBad debt provision 1,134,146.78 229,965.36 1,156,930.27 235,661.23Deferred income 3,662,110.80 915,527.70 4,011,354.26 1,002,838.57Total 4,796,257.58 1,145,493.06 5,168,284.53 1,238,499.80(2) Deferred income tax liabilities not offset Unit: RMB Closing balance Opening balance Item Taxable temporary Taxable temporary Deferred tax liabilities Deferred tax liabilities difference differencePre-tax deductions forthe accelerateddepreciation of fixedassetsTotal 8,403,611.60 2,100,902.90 8,704,373.77 2,176,093.44(3) Deferred income tax assets or liabilities listed at net amount after offsetting Unit: RMB Deferred income tax Closing balance of Deferred income tax Opening balance of assets and liabilities deferred income tax assets and liabilities deferred income tax Item offset at the end of the assets or liabilities after offset at the end of the assets or liabilities after period offsetting period offsettingDeferred income taxassetsDeferred income taxliabilities(4) Details of unconfirmed deferred income tax assets Unit: RMB Item Closing balance Opening balanceDeductible temporary differences 44,187,481.95 65,728,723.52Deductible losses 12,512,551.57Total 56,700,033.52 65,728,723.52(5) Deductible losses for which deferred tax assets are not recognized will become due in the followingyears Unit: RMB Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Year Closing amount Opening amount RemarkTotal 12,512,551.57 Unit: RMB Closing balance Opening balance Item Impairment Impairment Book balance Book value Book balance Book value provision provisionPrepaid landpaymentAdvancepayment forconstruction in 16,286,457.24 16,286,457.24 21,629,081.65 21,629,081.65progress andequipmentTotal 18,286,457.24 18,286,457.24 23,629,081.65 23,629,081.65 Unit: RMB End of period Beginning of period Item Informatio Informatio Book Type of Book Type of Book value n of Book value n of balance restriction balance restriction restriction restriction Guarantee Guarantee deposits for deposits forMonetary 7,800,000.0 7,800,000.0 28,789,884. 28,789,884. notes and notes andfunds 0 0 20 20 letters of letters of guarantee guaranteeFixed 473,692,26 425,373,76 Mortgage 473,692,26 432,974,05 Mortgageassets 7.44 3.77 loans 7.44 3.41 loansIntangible 52,255,113. 47,552,152. Mortgage 52,255,113. 48,074,703. Mortgageassets 26 82 loans 26 98 loansConstruction inprogressTotal(1) Category of short-term loans Unit: RMB Item Closing balance Opening balanceCredit loans 16,010,400.00 16,022,933.34Total 16,010,400.00 16,022,933.34 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Unit: RMB Type Closing balance Opening balanceBanker’s acceptance 15,000,000.00 56,979,768.40Total 15,000,000.00 56,979,768.40(1) Presentation of accounts payable Unit: RMB Item Closing balance Opening balanceWithin 1 year (included) 65,581,183.67 77,509,149.94Over 1 year 7,868,145.26 5,034,531.48Total 73,449,328.93 82,543,681.42 Unit: RMB Item Closing balance Opening balanceDividends payable 5,234,835.31 5,234,835.31Other payables 22,975,338.07 19,337,100.36Total 28,210,173.38 24,571,935.67(1) Dividends payable Unit: RMB Item Closing balance Opening balanceDividends from ordinary shares 5,234,835.31 5,234,835.31Total 5,234,835.31 5,234,835.31(2) Other payables Unit: RMB Item Closing balance Opening balance Earnest money and deposits 5,432,085.83 5,518,240.83 Staff costs 5,491,785.66 912,274.58 Production safety costs 2,570,414.62 1,708,525.48 Others 9,481,051.96 11,198,059.47Total 22,975,338.07 19,337,100.36 Unit: RMB Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Reasons for non-settlement or non- Item Closing balance repayment Earnest money 5,000,000.00 Not yet due for settlementTotal 5,000,000.00(1) Presentation of advance receipts Unit: RMB Item Closing balance Opening balance Advance rent collection 1,319,438.37 1,201,097.79Total 1,319,438.37 1,201,097.79 Unit: RMB Item Closing balance Opening balanceAdvances from customers 58,602,167.88 8,866,554.08Total 58,602,167.88 8,866,554.08(1) Presentation of payroll payable Unit: RMB Increase in current Decrease in current Item Opening balance Closing balance period periodI.Short -termcompensationII.Post employmentbenefits - defined 1,698,733.33 7,296,856.48 6,297,245.78 2,698,344.03contribution planIII.Dismissal benefits 184,072.00 184,072.00IV.Other benefits duewithin one yearTotal 77,123,782.16 80,909,028.10 111,873,387.65 46,159,422.61(2) Presentation of short-term salary Unit: RMB Increase in current Decrease in current Item Opening balance Closing balance period periodallowances, and Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.subsidiesexpensespremiums Including:Medical insurance 2,632,007.26 2,632,007.26premiumsWork injury insurancepremiumfundand employee 1,666,356.88 395,723.83 428,276.78 1,633,803.93education fundsTotal 75,425,048.83 73,420,510.47 105,385,445.87 43,460,113.43(3) Presentation of defined contribution plans Unit: RMB Increase in current Decrease in current Item Opening balance Closing balance period periodinsuranceinsurance premiumpaymentSocial insurance andsubsidies for retireesTotal 1,698,733.33 7,296,856.48 6,297,245.78 2,698,344.03 Unit: RMB Item Closing balance Opening balanceValue added tax 195,393.14 313,943.05Enterprise income tax 580,292.11 1,132,290.71Personal income tax 136,580.26 724,602.15Urban maintenance and construction tax 6,343.64 17,069.51Property tax 371,518.59 376,654.33Land use tax 323,569.87 323,569.87Education surcharges 3,123.57 12,192.49Withholding tax 4,238,001.66 5,617,389.27Other taxes and fees 81,920.58 186,488.03Total 5,936,743.42 8,704,199.41 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Unit: RMB Item Closing balance Opening balanceLong-term borrowings due within oneyearTotal 17,529,833.33 16,679,833.33 Unit: RMB Item Closing balance Opening balanceOutput tax on advances from customers 11,770.97 19,248.74Total 11,770.97 19,248.74(1) Category of long-term loans Unit: RMB Item Closing balance Opening balanceMortgage loan 42,437,887.35 41,243,862.50Guaranteed Loan 93,090,416.67 94,601,062.50Mortgage and guaranteed loan 357,179,377.09 342,214,324.56Less: long-term borrowings due within -17,529,833.33 -16,679,833.33one yearTotal 475,177,847.78 461,379,416.23 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Notes to the classification of long-term loans:Note 1: The collateral for the mortgage loans is the properties located at Rooms 2501-2506, Building 1, Guoxin Financial Center,No. 31 Xianxialing Road, Laoshan District, with real estate certificate numbers Lu (2022) Qingdao Laoshan District Real EstateRights No. 0051706, No. 0051707, No. 0051708, No. 0051709, No. 0051710, and No. 0051711, respectively, with a book value ofRMB61,048,409.07.Note 2: The guarantor of the guaranteed loans is Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd.Note 3: The collateral for the mortgage and guaranteed loans consists of: the purse seine vessels "Tailong 7" and "Tailong 9," witha book value of RMB338,619,850.72; fishing vessels "Luqing Yuanyu 367" and "Luqing Yuanyu 368," with a book value ofRMB25,705,503.98; the Zhonglu Marine Innovation Industry Park project under construction, with a book value ofRMB220,235,411.15; and the land use right of Zhonglu Oceanic (Qingdao) Industrial Investment and Development Co., Ltd., withreal estate certificate number Lu (2022) Jiaozhou Real Estate Rights No. 0000267, with a book value of RMB47,552,152.82. Theguarantors are Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd. and Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.(1) Long term employee payroll payable Unit: RMB Item Closing balance Opening balanceII. Dismissal benefits 428,721.93 428,721.93III.Other long-term benefits 56,342.81 63,931.96Total 485,064.74 492,653.89 Unit: RMB Increase in current Decrease in Item Opening balance Closing balance Cause period current period GovernmentGovernmentsubsidies assetsTotal 53,112,953.91 1,316,661.94 51,796,291.97 Unit: RMB Increase/decrease for this change (+, -) Opening Conversion Closing balance Issue of new Stock of provident balance Others Subtotal shares dividend fund into sharesTotal number 266,071,320. 266,071,320.of shares 00 00 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Unit: RMB Increase in current Decrease in current Item Opening balance Closing balance period periodCapital premium (sharecapital premium)Other capital reserve 106,526,779.23 106,526,779.23Total 295,620,272.02 295,620,272.02 Unit: RMB Amount incurred in current period Less: Less: Previously previously included in included in Amount other other incurred comprehen Attributabl Opening comprehen Attributabl Closing Item before sive Less: e to balance sive e to the balance income tax income, Income tax minority income and parent in the and expense shareholder transferred company current transferred s after tax to profit or after tax period to retained loss in the earnings in current the current period periodII.Othercomprehensive - - - - -income tobereclassifiedinto profitor lossTranslationdifferences - - - - -in foreigncurrencyfinancialstatementsTotal ofother - - - - -comprehen 6,329,745.3 8,884,502.7 7,001,489.6 1,883,013.1 13,331,235.sive 6 6 6 0 02income Unit: RMB Increase in current Decrease in current Item Opening balance Closing balance period period Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Safe production expense Total 19,038.84 1,628,426.94 1,511,464.58 136,001.20 Unit: RMB Increase in current Decrease in current Item Opening balance Closing balance period period Statutory surplus reserve Total 21,908,064.19 21,908,064.19 Unit: RMB Item Current period Previous period Undistributed profits at the end of the previous period before adjustment Undistributed profits at the beginning of the adjustment period Plus: Net profit attributable to the owners of the parent company in the current -36,574,394.03 -13,337,046.26 period Undistributed profit at the end of the period Unit: RMB Amount incurred in the current period Amount incurred in the previous period Item Income Cost Income Cost Main business 405,859,371.95 402,144,628.18 672,380,621.32 655,996,952.87 Other businesses 4,722,333.77 1,103,420.64 4,999,456.17 1,103,689.78 Total 410,581,705.72 403,248,048.82 677,380,077.49 657,100,642.65 Disaggregated information of operating income and operating costs: Unit: RMB Refrigerat Product OEM Cold Other PropertyContract classification Segment ed Segment 2 sales processing storage fee business lease and Total revenue revenue revenue revenue others revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Cost Cost Cost Cost Cost Cost Cost Cost Cost Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Business typeBy timingof transferof goods Among them:at a point inRecognized ,44 ,22 79, ,06 ,55time .74 .60 .39over a periodRecognized ,34 ,71 954 ,50 ,31of time .24 .45 8 .80 .13 ,44 ,22 669 826 94, ,58 ,24 Total .74 .60 .24 .45 .97 .80 .13 Unit: RMB Item Amount incurred in the current period Amount incurred in previous period Urban maintenance and construction tax 43,117.99 49,511.03 Education surcharges 18,466.92 20,674.26 Property tax 938,396.85 976,826.92 Land use tax 253,794.94 253,794.94 Vehicle and vessel use tax 12,295.64 12,635.48 Stamp duty 189,340.30 434,581.32 Local education surcharge 12,311.29 14,660.57 Total 1,467,723.93 1,762,684.52 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodEmployee compensation 18,744,889.49 17,518,864.13Accumulated depreciation andamortizationTravel expenses 805,294.19 657,996.35Business entertainment expenses 218,344.68 256,023.57Vehicle cost 385,616.37 330,022.07Intermediary service fee 753,796.72 908,152.87Office expenses 1,524,366.08 1,595,357.85Property water and electricity 754,079.50 738,833.95Others 2,104,074.01 2,887,447.28Total 28,370,121.32 28,243,483.54 Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodEmployee compensation 744,998.50 741,187.31Business promotion expenses 615,351.45 818,289.04Travel expenses 84,754.11 77,234.13Depreciation expenses 21,343.05 45,820.14Communication fee 2,483.72 3,722.10Others 424,045.53 285,054.54Total 1,892,976.36 1,971,307.26 Unit: RMB Item Amount incurred in the current period Amount incurred in previous period Employee compensation 485,457.96 580,102.50 Materials 557,227.44 622,962.47 Depreciation costs 301,750.14 642,156.24Others 21,917.48 11,175.20Total 1,366,353.02 1,856,396.41 Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodInterest expenses 4,542,753.58 5,583,036.73Interest income -549,308.27 -655,252.31Exchange gains and losses 11,260,646.40 -1,978,217.74Handling fee expenditure 1,001,028.99 945,170.60Total 16,255,120.70 3,894,737.28 Unit: RMB Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Sources of other income generation Amount incurred in the current period Amount incurred in previous periodFinancial subsidy for shipbuilding 885,197.26 935,387.24Financial subsidies for specialconstruction funds in the blue economic 349,243.44 349,243.44zoneSubsidy for return transportation 548,081.85Others 208,543.55 196,101.79Total 1,991,066.10 1,480,732.47 Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodLong-term equity investment income -201,905.00 -231,502.46accounted using the equity methodDiscount on notes -89,141.67Total -291,046.67 -231,502.46 Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodBad debt loss on accounts receivable 1,585,506.41 -296,982.91Bad debt loss on other receivables 2,692,855.30 175,982.22Total 4,278,361.71 -121,000.69 Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodI. Inventory falling price loss andcontract performance cost impairment -2,039,274.87 -3,604,352.83lossTotal -2,039,274.87 -3,604,352.83 Unit: RMB Sources of gain on disposal of assets Amount incurred in the current period Amount incurred in previous periodGain or loss on disposal of fixed assets -12,608.53 Unit: RMB Amount included in current Amount incurred in the Amount incurred in previous Item non-recurring gains and current period period lossesOthers 220.00 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Total 220.00 Unit: RMB Amount included in current Amount incurred in the Amount incurred in previous Item non-recurring gains and current period period lossesLoss from the destruction andscrapping of non-current 155,930.64 155,930.64assetsOthers 1,597.73 18,503.26 1,597.73Total 157,528.37 18,503.26 157,528.37(1) Income tax expense statement Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodCurrent income tax expense 948,289.14 1,068,725.45Deferred income tax expense 17,816.20 -2,967.61Total 966,105.34 1,065,757.84(2) Accounting profit and income tax expense adjustment process Unit: RMB Item Amount incurred in current periodTotal profit -38,237,060.53Income tax expenses calculated based on statutory/applicable -9,559,265.12tax ratesEffect of different tax rates applied to subsidiaries 4,061,654.94The impact of adjusting income tax of previous periods 18,869.74The impact of non-taxable income 3,109,161.48The impact of deductible temporary differences or deductiblelosses on unrecognized deferred income tax assets in the 3,335,684.30current periodIncome tax expenses 966,105.34For details, refer to Note VII. 32. Other Comprehensive Income.(1) Cash in connection with operating activitiesOther cash received in connection with operating activities Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodFinancial expenses - interest income 549,302.07 654,791.38Government subsidies and other non-operating incomeCurrent accounts and others 990,314.22 3,976,955.26Total 21,206,686.97 12,888,250.44Other cash paid in connection with operating activities Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodCash paid sales expenses 1,542,965.16 1,292,425.93Cash paid management fees 8,587,191.84 8,919,550.63Current accounts and others 2,851,087.31 4,639,263.97Total 12,981,244.31 14,851,240.53(2) Cash in connection with financing activitiesOther cash received in connection with financing activities Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodBanker’s acceptance discounted 7,410,858.33Total 7,410,858.33Other cash paid in connection with financing activities? Applicable □Not applicable Unit: RMB Increase Decerase Opening Item Non-cash Non-cash Closing balance balance Cash change Cash change change changeShort-termborrowingsLong-termborrowingsNon-currentliabilities due 16,679,833.33 9,139,916.67 8,289,916.67 17,529,833.33within one yearTotal 494,082,182.90 23,000,000.00 9,340,448.96 8,564,634.08 9,139,916.67 508,718,081.11(1) Supplementary information to the cash flow statement Unit: RMB Supplementary information Amount in current period Amount in previous periodfrom operating activities: Net profit -39,203,165.87 -21,021,947.31 Plus: Asset impairment provision -21,503,676.83 -803,187.46 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Depreciation of fixed assets,depletion of oil and gas assets, anddepreciation of productive biologicalassets Depreciation of use rights assets 6,260.64 Amortization of intangible assets 745,898.88 746,504.22 Amortization of long-termdeferred expenses Loss on disposal of fixed assets,intangible assets, and other long-term 12,608.53assets (income, using"-") Loss on scrapping of fixed assets(income, using "-") Loss from changes in fair value(income , using "-")Financial expenses (income , using "-") 4,542,753.58 5,583,036.73 Investment losses (income , using"-") Decrease in deferred income taxassets (increase, using "-") Increase in deferred income tax -75,190.54 -75,190.54liabilities (decrease , using "-") Decrease in inventory (increase , -59,192,663.20 77,723,544.03using "-") Decrease in operating receivables(increase , using "-") Increase in operating payables -14,233,012.53 -26,948,991.80(decrease , using "-") Others Net cash flow generated from -31,864,804.21 82,605,264.02operating activitiesactivities that do not involve cashreceipts and payments: Debt converted to capital Convertible corporate bonds maturingwithin one year Fixed assets acquired throughfinancing leaseequivalents: Closing balance of cash 225,552,220.34 287,587,822.81 Less: Opening balance of cash 284,306,289.50 249,437,263.40 Plus: Closing balance of cashequivalents Less: Opening balance of cashequivalents Net increase in cash and cash -58,754,069.16 38,150,559.41 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.equivalents(2) Composition of cash and cash equivalents Unit: RMB Item Closing balance Opening balanceI. Cash 225,552,220.34 284,306,289.50Including: cash in hand 550,558.13 615,541.90 Bank deposits available forpayment at any timeIII. Closing balance of cash and cashequivalents(3) Monetary funds that are not cash and cash equivalents Unit: RMB Amount incurred in current Amount incurred in previous Reasons why they are not Item period period cash and cash equivalents Guarantee deposits for notesOther monetary funds 7,800,000.00 5,218,266.50 and letters of guaranteeTotal 7,800,000.00 5,218,266.50(1) Foreign currency monetary items Unit: RMB Closing foreign currency Closing converted RMB Item Conversion exchange rate balance balanceMonetary funds 100,850,091.52Including: US dollar 5,081,288.36 6.8109 34,608,146.88 Euro 2,781,419.89 7.7671 21,603,566.44 HKD SAR 11,188,521.35 0.6037 6,754,510.34 JPY 901,031,462.96 0.0420 37,883,867.86Accounts Receivable 7,529,568.87Including: US dollar 1,025,944.96 6.8109 6,987,608.53 Euro HKD SAR 897,731.22 0.6037 541,960.34Advance Payment 19,728,169.20Including: US dollar 2,658,136.26 6.8109 18,104,300.28 Euro 77,631.06 7.7671 602,968.20 XOF 87,256,471.79 0.0117 1,020,900.72Long-term LoanIncluding: US dollar Euro Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. HKDOther Receivables 67,462,232.75Including: US dollar 9,875,265.28 6.8109 67,259,444.30 SAR 333,892.74 0.6037 201,571.05 XOF 104,051.28 0.0117 1,217.40Accounts Receivable 15,829,070.31Including: US dollar 2,190,779.76 6.8109 14,921,181.85 Euro 116,886.95 7.7671 907,872.65 SAR 26.19 0.6037 15.81Contract Liability 19,352,669.92Including: US dollar 135,307.68 6.8109 921,567.08 SAR 2,679,854.58 0.6037 1,617,828.21 XOF 1,008,068,618.80 0.0117 11,794,402.84 JPY 119,369,051.97 0.0420 5,018,871.79Other Payables 921,567.08Including: US dollar 135,307.68 6.8109 921,567.08 (2) The nature and financial impact of non-convertibility of currencies, the spot exchange rates adoptedand their estimation process, as well as the risks faced by the enterprise due to the non-convertibility ofcurrencies□ Applicable ?Not applicable(3) Explanation of overseas operating entities, including for important overseas operating entities, themain overseas operating location, recording currency, and selection basis should be disclosed. If there is achange in recording currency, the reasons should also be disclosed.? Applicable □Not applicable Overseas main Recording Selection basisImportant overseas operating entities business location currencyHABITAT INTERNATIONAL CORPORATION Panama USD The economic environment in which the business operatesLAIF FISHERIES COMPANY LIMITED Ghana USD The economic environment in which the business operatesYAW ADDO FISHERIES COMPANY LIMITED Ghana USD The economic environment in which the business operatesZHONG GHA FOODS COMPANY LIMITED Ghana USD The economic environment in which the business operatesAFRICA STAR FISHERIES LIMITED Ghana USD The economic environment in which the business operates(4) Circumstances where there is a lack of convertibility between the functional currency of a foreignoperation and the presentation currency of the enterprise□ Applicable ?Not applicable Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(1) The Company as a lessee□ Applicable ?Not applicable(2) The Company as a lessorOperating leases as a lessor? Applicable □Not applicable Unit: RMB Including: variable lease payments- Item Lease income related income not included in lease receiptsProperty lease income 1,792,271.80Total 1,792,271.80Financing leases as a lessor□Applicable ? Not applicableAnnual undiscounted lease receipts for the next five years□Applicable ? Not applicableReconciliation of undiscounted lease receipts and net investment in leases(3) Recognition of sales profit or loss from financing leases as a producer or distributor□Applicable ? Not applicableVIII. R&D Expenditures Unit: RMB Item Amount incurred in the current period Amount incurred in previous periodPayroll 485,457.96 580,102.50Materials 557,227.44 622,962.47Depreciation costs 301,750.14 642,156.24Others 21,917.48 11,175.20Total 1,366,353.02 1,856,396.41Including: expensed R&D expenditures 1,366,353.02 1,856,396.41IX. Equity in other entities(1) Composition of enterprise groups Unit: RMB Main Shareholding proportion Name of Registered Place of Business Method of operating subsidiary capital registration nature Direct Direct acquisition location Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.ShandongZhonglu Establishmen RMB22,505, Qingdao, Qingdao, RefrigeratedAquatic 100.00% t byShipping investmentCo., Ltd.ShandongZhongluOceanic(Yantai) Establishmen RMB104,322 Yantai, Yantai, FoodFood Co., 46.69% 25.77% t by ,300.00 Shandong Shandong processingLtd. (referred investmentto as“ZhongluFood”)ShandongZhongluHaiyanOceanic Establishmen RMB221,617 Qingdao, Qingdao, Long rangeFisheries 59.05% t by ,300.00 Shandong Shandong fishingCo., Ltd. investment(referred toas “ZhongluHaiyanzi”)ZhongluOceanic(Qingdao) EstablishmenIndustrial RMB192,000 Qingdao, Qingdao, RefrigeratedInvestment ,000.00 Shandong Shandong transport investmentandDevelopmentCo., Ltd.HABITATINTERNATI Establishmen USD1,507,4 RefrigeratedONAL Panama Panama 100.00% t byCORPORAT investmentIONLAIF Zhonglu EstablishmenFISHERIES USD400,000 Long range Haiyan holds Ghana Ghana t byCOMPANY .00 fishing 100% of the investmentLIMITED shares.AFRICA Zhonglu EstablishmenSTAR USD400,000 Long range Haiyan holds Ghana Ghana t byFISHERIES .00 fishing 100% of the investmentLIMITED shares.ZHONG ZhongluGHA Establishmen USD500,000 Long range Haiyan holdsFOODS Ghana Ghana t by .00 fishing 100% of theCOMPANY investment shares.LIMITEDShandong ZhongluZhonglu Establishmen RMB15,000, Yantai, Yantai, Warehousing Food holdsOceanic t byRefrigeration investment shares.Co., Ltd.YAW Long range OperatingADDO Ghana Ghana fishing leasesFISHERIES Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.COMPANYLIMITED(2) Important non wholly-owned subsidiaries Unit: RMB Profit and loss Dividends declared for Shareholding Closing balance of attributable to minority distribution to minority Name of subsidiary proportion of minority minority shareholders" shareholders in the shareholders in the shareholder equity current period current periodShandong ZhongluHaiyan Oceanic 40.95% -5,694,865.94 151,696,420.27Fisheries Co., Ltd.Shandong ZhongluOceanic (Yantai) Food 27.54% 3,066,094.10 107,460,135.21Co., Ltd.(3) Main financial information of important non-wholly-owned subsidiaries Unit: RMB Closing balance Opening balance Name Non- Non- of Non- Current Total Non- Current Total Current Total of current Current Total currentsubsidi current liabilitie liabilitie current liabilitie liabilitie assets assets liabilitie assets assets liabilitie ary assets s s assets s s s sShandongZhongluHaiyan 5,891, 6,022,Oceanic 228.59 562.33Fisheries Co.,Ltd.ShandongZhongluOceanic 6,757, 7,264,(Yantai) 426.45 081.67FoodCo.,Ltd. Unit: RMB Amount incurred in current period Amount incurred in previous period Name of Total Cash flow Total Cash flow subsidiary Operating comprehen of Operating comprehen of Net profit Net profit income sive operating income sive operating income activities income activitiesShandongZhonglu - - - - - -Haiyan 101,326,36 168,675,16Oceanic 2.89 3.34FisheriesCo., Ltd. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.ShandongZhonglu - -Oceanic 237,557,46 11,133,239. 11,133,239. 343,527,20 5,276,731.4 5,276,731.4(Yantai) 9.65 30 30 5.90 7 7Food Co.,Ltd.(1) Summary financial information of insignificant joint ventures and joint operations Unit: RMB Closing balance/amount in this period Opening balance/amount in prior periodJoint ventures:Total amount of the following itemscalculated based on the shareholdingproportionJoint operations:Total book value of investment 239,987.08 647,119.58Total amount of the following itemscalculated based on the shareholdingproportion-Net profits -201,905.00 -231,502.46-Total comprehensive income -201,905.00 -231,502.46Other notes:Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd., a subsidiary of the Company, holds 15.00% of the shares of Jinan QinzhenFood Technology Co., Ltd. and appoints a director for it, having a significant impact on its production and operations.X. Government Grants? Applicable □Not applicableClosing balance of accounts receivable: RMB 88,287,931.00.Reasons why the estimated amount of government grants were not received at the estimated point in timeApplicable ? Not applicableAs of June 30, 2026, the total balance of international performance capacity enhancement subsidy funds receivable by theCompany and its controlling subsidiaries amounted to RMB84,612,900.00. The competent authority for this government grant, theAgriculture and Rural Affairs Bureau of Laoshan District, Qingdao, stated that the funds will be disbursed in an orderly mannerbased on future fiscal conditions.? Applicable □Not applicable Unit: RMB Accounting Opening Amount of Amount Amount Other Closing Related to Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. item balance new grants in included in transferred to changes in balance assets/incom this period non- other income this period e operating in this period income in this period GovernmentDeferred 53,112,953.9 51,796,291.9 subsidiesincome 1 7 related to assets? Applicable □Not applicable Unit: RMB Accounting item Amount incurred in current period Amount incurred in previous periodOther income 1,966,431.18 1,459,767.92XI. Risks Related to Financial Instruments The Company’s key financial instruments include accounts receivable, other receivables, accounts payable, and otherpayables. For the details of each financial instrument, please refer to the relevant items in Note VII. The purpose of the Company’srisk management is to strike an appropriate balance between risk and income, minimize the negative impact of risks on its businessperformance, and maximize the interests of shareholders and other equity investors. Based on the purpose of risk management, thebasic strategy for the Company’s risk management is to identify and analyze all the risks faced by the Company, establish anappropriate bottom line for risk tolerance, conduct risk management, timely and reliably monitor all risks, and control risks withina limited extent. (1) Credit risk If the customer or counterparty involved in a financial instrument is unable to perform their obligations under the contract,resulting in financial losses to the Company, it is credit risk. Credit risk mainly comes from accounts receivable from customers.The book values of accounts receivable, notes receivable, and other receivables are the biggest credit risk to the Company’sfinancial assets. (2) Market risk The market risk of a financial instrument is the risk of changes in the fair value or future cash flows of the financialinstrument caused by market price changes. It includes exchange rate risk, interest rate risk, and other price risk. The Company uses the sensitivity analysis technique to analyze the potential effect of reasonable, possible changes in therelevant variables of market risk on profit or loss or shareholders’ interests. It is rare for any risk variable to change in isolation,and the amount of the final effect of the correlation between variables on changes in a risk variable will have a significant effect.Hence, the following content is based on the assumption that changes in each variable happen in independent circumstances. ① Exchange rate risk Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Exchange rate risk is the risk of changes in the fair value or future cash flows of a financial instrument caused by exchangerate changes. The exchange rate risk facing the Company mainly comes from financial assets priced in US dollars. The amount offoreign-currency financial assets in RMB is presented in “VII. 52 Foreign-currency monetary items.” ② Interest rate risk Interest rate risk is the risk of changes in the fair value or future cash flows of a financial instrument caused by changes inthe market interest rate. The interest rate risk facing the Company mainly comes from long-term borrowings from banks. As theCompany’s borrowings use the floating interest rate, there is a risk of changes in the RMB benchmark interest rate. (3) Liquidity risk Liquidity risk is the risk of a fund shortage encountered by the Company when performing obligations related to financialliabilities. In the context of normal financial conditions and financial strains, the Company makes sure to have sufficient liquidityto repay debts that are due, consults financial institutions for financing, and maintains a certain level of standby line of credit toreduce liquidity risk.(1) Classification by transfer mode?Applicable □ Not applicable Unit: RMB Nature of transferred Amount of transferred Basis for determining Transfer method Derecognition status financial assets financial assets derecognition Banker"s acceptancesNotes discounted Banker"s acceptance 15,000,000.00 Fully derecognized issued by banks with high credit ratings Total 15,000,000.00(2) Financial assets derecognized due to transfer?Applicable □ Not applicable Unit: RMB Method of financial asset Amount of financial assets Gains or losses related to Item transfer derecognized derecognitionNotes receivable Notes discounted 15,000,000.00 -89,141.67 Total 15,000,000.00 -89,141.67(3) Continuing involvement in transferred financial assets□Applicable ? Not applicable Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.XII. Related Parties and Related Transactions The shareholding Proportion of Name of parent Place of ratio of the parent voting rights of the Business nature Registered capital company registration company in the parent company to company the company Investment and Management, Asset ManagementShandong State - and Capitalowned Assets Jinan, Shandong Operations, RMB4.5 billion 47.25% 47.25%Investment CustodyHoldings Co., Ltd. Operations, Investment ConsultingDisclosure of the parent of the CompanyThe ultimate controlling party of the enterprise is the State owned Assets Supervision and Administration Commission of thePeople"s Government of Shandong Province.Details regarding the subsidiaries of the Company are provided in Note IX. 1. Interests in subsidiaries.Information on significant joint ventures or associates of the Company can be found in Note IX. 2. Interests in joint ventures andassociates.Information of other joint ventures or joint operations that had related-party transactions with the Company in this period or inprior period that gave rise to balance: Name of joint venture or joint operation Relationship with the CompanyJinan Qinzhen Food Technology Co., Ltd. Joint operation Name of other related parties Relationship between other related parties and our companyDezhou Bank Co., Ltd Controlled by the same parent companyZhongtai Xincheng Asset Management Co., Ltd Controlled by the same parent company(1) Related party transactions for purchasing and selling goods, providing and receiving labor servicesInformation of the sale of goods/provision of labor services Unit: RMB Content of related party Amount incurred in current Amount incurred in previous Related parties transaction period periodJinan Qinzhen Food Tuna products 132,285.50 121,394.00 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.Technology Co., Ltd.Shandong State-owned Assets Trusteeship fees 849,056.58 849,056.60Investment Holding Co., Ltd.(2) Related entrusted management/contracting and entrusted management/outsourcing situationTable of entrusted management/contracting situation of our company: Unit: RMB Confirmed Name of the Pricing basis Name of Type of Starting date of Ending date of custody entrusting for custody trustee/contract entrusted/contra commission/co commission/co income/contractparty/outsourci income/contract or cted assets ntracting ntracting ing income in ng party ing income this periodShandong ShandongState-owned ZhongluAssets Entrusted Oceanic April 14, 2022 By contract 849,056.58Investment management Fisheries Co.,Holdings Co., Ltd.Ltd.(3) Compensation for key management personnel Unit: RMB Item Amount incurred in current period Amount incurred in previous periodCompensation for key managementpersonnel(4) Other related party transactions Item Related party Amount incurred in Amount incurred in current period previous periodIncome from deposit interest Dezhou Bank Co., Ltd. 69.51 198.87(1) Receivable Unit: RMB Closing balance Opening balance Name of item Related party Book balance Bad debt provision Book balance Bad debt provision Jinan QinzhenAccounts Food Technology 119,067.40 5,953.37 138,262.40 6,913.12receivable Co., Ltd. Shandong State- owned AssetsOther receivables 900,000.00 45,000.00 1,800,000.00 90,000.00 Investment Holdings Co., Ltd. Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(2) Payables Unit: RMB Item Affiliate Closing book balance Opening book balance Zhongtai Xincheng AssetDividends payable 5,234,835.31 5,234,835.31 Management Co., LtdXIII. Commitments and contingenciesSignificant commitments existing on the balance sheet dateAs of the balance sheet date, there was no commitment to disclose.(1) Significant contingencies on the balance sheet dateAs of the balance sheet date, there was no contingency to disclose.(2) The company should also explain if it has not any important contingencies that need to be disclosedThere are no significant contingencies that need to be disclosed by the company.XIV. Events after the balance sheet dateAs of the balance sheet date, there was no post-balance sheet event to disclose.XV. Other Important MattersThe Company has established the occupational pension system in accordance with relevant laws, regulations, and policies. TheCompany pays for supplementary pension insurance for employees (occupational pension) on the basis of joining the basicpension insurance. The Company sets the business performance coefficient based on its actual operations and calculates the totalamount to be paid based on that coefficient. The amount to be paid by the Company in occupational pension has been disclosed in“payroll payable - defined contribution plans.” The amount to be paid by employees is deducted from payroll by the Company.The amount of occupational pension accrued by the Company in the current period is RMB1,766,500.00. For relevant disclosure,refer to “Note VII. 24. Payroll payable.” Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(1) Basis for determining reporting segments and accounting policiesThe Company’s main businesses include long range fishing, refrigerated transportation, processing, and trade of aquatic products,and other businesses. The Company discloses segment reporting based on the different natures of its main businesses.(2) Financial information of the reporting segment Unit: RMB Seafood Long range Marine refrigeration Inter-segment Item Others Total fishing transport processing offset tradeI. Income frommain businessII.Mainbusiness costIII.Creditimpairment lossIV.Asset -2,039,274.87 -2,039,274.87impairment lossV.Depreciationcosts andamortizationcostsVI.Total profit -35,378,058.07 -2,088,092.14 12,017,356.29 -12,788,266.61 -38,237,060.53VII.Income taxexpensesVIII.Net profit -35,378,058.07 -2,169,874.66 11,133,239.30 -12,788,472.44 -39,203,165.87IX.Total assets 277,870,435.71 502,247,294.51X.Total -liabilities 457,371,866.86XVI. Notes to Main Items in the Parent Company"s Financial Statements(1) Disclosure by aging Unit: RMB Aging Closing book balance Opening book balanceWithin one year (included) 2,355,971.27 7,136,938.33More than 3 years 5,689,018.01 5,689,018.01Total 8,044,989.28 12,825,956.34 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(2) Disclosure by accrual method of bad debt provision Unit: RMB Closing balance Opening balance Book balance Bad debt provision Book balance Bad debt provisionCategor y Accrual Book Accrual Book Proporti value Proporti value Amount Amount proporti Amount Amount proporti on on on onAmongthem:Accountsreceivable of baddebtprovisio 100.00% 70.72% 100.00% 47.20%nwithdrawn bycombinationAmongthem:non-affiliate 100.00% 70.72% 100.00% 47.20%groupTotal 100.00% 70.72% 100.00% 47.20%Accrual of bad debt provision by group: Unit: RMB Closing balance Name Book balance Bad debt provision Accrual proportionNon-affiliate group 8,044,989.28 5,689,018.01 70.72%Total 8,044,989.28 5,689,018.01If the bad debt provision of accounts receivable is made based on the general model of expected credit losses:□Applicable ? Not applicable(3) Bad debt provisions accrued, recovered or reversed in the current periodAccrual of bad debt provision in current period: Unit: RMB Change amount of current period Opening Category Recovery or Closing balance balance Accrual Write-off Others reversalBad debtprovision foraccountsreceivableTotal 6,053,364.93 -364,346.92 5,689,018.01 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.(4) Top five accounts receivable and contract assets in terms of closing balance summarized by debtor Unit: RMB Closing balance of Proportion in the bad debt provision Closing balance of total closing Closing balance of for accounts Closing balance of accounts balance of Name of entity accounts receivable and contract assets receivable and accounts receivable impairment contract assets receivable and provision for contract assets contract assetsA 3,600,962.12 3,600,962.12 44.76% 3,600,962.12B 430,625.10 430,625.10 5.35% 430,625.10C 293,209.20 293,209.20 3.64% 293,209.20D 158,154.98 158,154.98 1.97% 158,154.98E 156,875.50 156,875.50 1.95% 156,875.50Total 4,639,826.90 4,639,826.90 57.67% 4,639,826.90 Unit: RMB Item Closing balance Opening balanceDividends receivable 26,199,905.76Other receivables 165,825,490.33 186,581,184.21Total 165,825,490.33 212,781,089.97(1) Dividends receivable Unit: RMB Item (or invested entity) Closing balance Opening balanceHABITAT INTERNATIONALCORPORATIONTotal 26,199,905.76(2) Other receivables Unit: RMB Nature of payment Closing book balance Opening book balanceInternal transactions within the company 145,571,303.01 157,404,302.58Reserve funds and others 35,620,850.49 46,230,800.83Total 181,192,153.50 203,635,103.41 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Unit: RMB Aging Closing book balance Opening book balanceWithin 1 year (included) 72,457,422.11 133,750,143.06More than 3 years 27,083,142.25 32,493,625.82Total 181,192,153.50 203,635,103.41 Unit: RMB Closing balance Opening balance Book balance Bad debt provision Book balance Bad debt provisionCategor y Proporti Book Proporti Book Proporti value Proporti value Amount Amount on of Amount Amount on of on on accrual accrualAllowance forbaddebts 6,936,76 6,936,76 6,936,76 6,936,76provided 7.11 7.11 7.11 7.11on anindividual basisAmongthem:Bad debtprovision 96.17% 4.84% 96.59% 5.14%accruedby group Among them:Non-affiliate 35,620,8 8,429,89 27,190,9 46,230,8 10,117,1 36,113,6combina 50.49 6.06 54.43 00.83 52.09 48.74tionPortfolioofconsolid 138,634, 138,634, 150,467, 150,467,ated 535.90 535.90 535.47 535.47relatedpartiesTotal 100.00% 8.48% 100.00% 8.37%Name of category for which allowance for bad debts is provided on an individual basis: Unit: RMB Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Opening balance Closing balance Name Bad debt Bad debt Proportion of Reason for Book balance Book balance provision provision accrual provision YAW’s ship purchase payment; the vessel has nowYAW ADDO beenFISHERIES dismantled, andCOMPANY YAW is unableLIMITED to pay this amount, hence the bad debt provision was made.Total 6,936,767.11 6,936,767.11 6,936,767.11 6,936,767.11Accrual of bad debt provision by group: Unit: RMB Closing balance Name Book balance Bad debt provision Proportion of accrualNon-affiliate aging group 35,620,850.49 8,429,896.06 23.67%Total 35,620,850.49 8,429,896.06Accrual of bad debt provision by general model of expected credit loss: Unit: RMB Stage 1 Stage 2 Stage 3 Expected credit loss for Expected credit loss for Bad debt provision Expected credit loss in the entire duration (no the entire duration Total the next 12 months credit impairment (credit impairment occurred) occurred)Balance as of JanuaryBalance as of JanuaryperiodAccrual of current -1,656,274.49 -30,981.54 -1,687,256.03periodBalance as of June 30,Changes in book balance with significant changes in loss reserves during the current period□Applicable ? Not applicableAccrual of bad debt provision in this period: Unit: RMB Change amount in this period Opening Category Recovered or Closing balance balance Accrued Write-off Others reversedBad debts of 17,053,919.20 -1,687,256.03 15,366,663.17 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.otherreceivablesTotal 17,053,919.20 -1,687,256.03 15,366,663.17 Unit: RMB Proportion to total Closing balance of Name of entity Nature of payment Closing balance Aging closing balance of bad debt provision other receivablesLAIF FISHERIESLIMITED Current accounts 57,037,465.24 Less than 1 year 31.48%COMPANYShandong ZhongluHaiyan Oceanic Current accounts 40,185,820.90 1-3 years 22.18%Fisheries Co., Ltd.Laoshan DistrictAgriculture and 6 months to 2 Government grant 30,758,735.00 16.98% 4,838,290.50Rural Affairs yearsBureauYAW ADDO Less than 1 year,FISHERIES Current accounts 20,602,626.27 1-3 years and 11.37%CO.,LTD aboveShandong ZhongluAquatic Shipping Current accounts 8,279,334.72 More than 3 years 4.57%Co., Ltd.Total 156,863,982.13 86.58% 4,838,290.50 Unit: RMB Closing balance Opening balance Item Impairment Impairment Book balance Book value Book balance Book value provision provisionInvestment onsubsidiariesTotal 328,189,455.23 328,189,455.23 328,189,455.23 328,189,455.23(1) Investment on subsidiaries Unit: RMB Opening Opening Change in increase/decrease in this period Closing Closing Invested balance balance of Accrual of balance balance of entity (book impairment Additional Reducing (book impairment impairment Others value ) provision investment investment value) provision provisionHABITATINTERNATIONALCORPORATIONShandong 22,869,513. 22,869,513.Zhonglu 38 38 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. Aquatic Shipping Co., Ltd Shandong Zhonglu Oceanic 55,448,185. 55,448,185. (Yantai) 24 24 Food Co., Ltd Shandong Zhonglu Haiyan 141,395,61 141,395,61 Oceanic 1.01 1.01 Fisheries Co., Ltd Zhonglu Oceanic(Qi ngdao) Industrial 96,000,000. 96,000,000. Investment 00 00 and Developme nt Co., Ltd Total Unit: RMB Amount incurred in current period Amount incurred in previous period Item Income Cost Income Cost Main business 59,533,900.97 73,913,455.10 147,358,263.13 148,555,603.53 Other businesses 3,324,889.79 1,692,607.54 4,003,423.65 1,714,319.34 Total 62,858,790.76 75,606,062.64 151,361,686.78 150,269,922.87 Disaggregated information of operating income and operating costs: Unit: RMB Product sales Other business Property lease Segment 1 Segment 2 Totalclassification revenue revenue and others Contract Reven Reven Reven Reven Reven Reven Cost Cost Cost Cost Cost Cost ue ue ue ue ue ue Business type Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd. By timing of transfer of goodsAmong them:Recognized at a point in time ,900.9 ,455.1 ,900.9 ,455.1Recognized over a period of time Total ,900.9 ,455.1 ,790.7 ,062.6XVII. Additional information? Applicable □Not applicable Unit: RMB Item Amount RemarksGains or losses on the disposal of non- -155,930.64current assetsGovernment grants recognized in profitor loss (excluding government grants thatare closely related to the Company’sbusiness, meet the standards of nationalpolicies, are received in accordance withestablished standards, and have acontinuous impact on the Company’sprofit or loss)Income from custody fees obtained from 849,056.58 Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.entrusted operationsOther non-operating income and -1,597.73expenses other than the aboveLess: Income tax impact amount 116,029.67 Amount of minority interest effect(after tax)Total 2,451,668.08 --The specific situation of other profit and loss items that meet the definition of non-recurring profit and loss:□Applicable ? Not applicableThe company does not have any specific cases of profit or loss items that meet the definition of non-recurring profit or loss.Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on InformationDisclosure of Companies Issuing Securities to the Public as recurring profit and loss items□Applicable ? Not applicable Earnings per share Profit during the reporting ROE Basic earnings per share Diluted earnings per share period (RMB /Share) (RMB /Share)Net profit attributable tocommon shareholders of the -3.41% -0.1375 -0.1375companyNet profit attributable tocommon shareholders of the -3.64% -0.1467 -0.1467company after deducting non-recurring profits and lossesaccounting standards and Chinese accounting standards□Applicable ? Not applicablestandards and Chinese accounting standards□Applicable ? Not applicablestandards. If reconciliation adjustments are made to data already audited by a foreign auditing firm, thename of such foreign auditing firm shall be noted.□Applicable ? Not applicable
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