新和成：2024年第三季度报告(英文版)

Zhejiang NHU Company Ltd.

Q3 2024 ReportThe Company and whole members of the BOD guarantee that the information disclosed isauthentic, accurate, complete and free from any false records, misleading statements or significantomissions.

Important Content Reminder:

1. The Board of Directors, Board of Supervisors, directors, supervisors and senior executives ofZhejiang NHU Company Ltd. (hereinafter referred to as the “Company”) hereby guarantee thatthe information presented in this report is authentic, accurate, complete and free of any falserecords, misleading statements or material omissions, and they will bear joint and severalliabilities for such information.

2. The Company’s legal representative, the person in charge of finance and accounting work, andthe person in charge of accounting institution (Accounting Officer) hereby declare and warrantthat the financial statements in this report are authentic, accurate and complete.

3. Whether the Third Quarterly Report has been audited or not

□ Yes √ No

Note:

This Report has been prepared in both Chinese and English version, and the English version is forreference only. Should there be any discrepancies or misunderstandings between the two versions,the Chinese versions shall prevail. The complete published Chinese Third Quarterly Report maybe obtained at www.cninfo.com.cn.

Section Ⅰ Key Accounting Data

Ⅰ Key Accounting Data and Financial IndicatorsWhether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not

□ Yes √ No

II Non-recurring gains and losses for this period

√ Applicable □ Not applicable

Unit: RMB

Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:

□ Applicable √ Not Applicable

The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteria forPublic Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss.

□ Applicable √ Not Applicable

The Company has no situation of defining non-recurring profit or loss listed in the “Interpretation Pronouncement on InformationDisclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or lossIII Major Changes of Main Items in Financial Statements and Financial Indicators within the ReportingPeriod, as well as the Reasons for the Changes

√ Applicable □Not applicable

1.Balance Sheet Position

(1) The closing balance of Cash and bank balances increased by 51.38% compared to the opening balance in this year. It wasmainly due to the increase in operating revenue and the increase in payment collection during the reporting period.

(2) The closing balance of held-for-trading financial assets decreased by 98.53% compared to the opening balance in this year. Itwas mainly due to the redemption of bank financial products upon maturity during the reporting period.

(3) The closing balance of Notes receivable increased by 163.62% compared to the opening balance in this year. It was mainlydue to the increase in payment for goods by way of promissory notes during the reporting period.

(4) The closing balance of Accounts receivable increased by 42.31% compared to the opening balance in this year. It was mainlydue to the increase in operating income during the reporting period.

(5) The closing balance of Receivables financing increased by 45.35% compared to the opening balance in this year. It wasmainly due to the increase in payment for goods by way of promissory notes during the reporting period.

(6) The closing balance of Other current assets decreased by 69.14% compared to the opening balance in this year. It was mainlydue to the decrease in value-added tax to be deducted during the reporting period.

(7) The closing balance of Construction in progress decreased by 61.80% compared to the opening balance in this year. It wasmainly due to the solidification of projects under construction during the reporting period.

(8) The closing balance of Long-term prepayments increased by 211.38% compared to the opening balance in this year. It wasmainly due to the increase in materials invested for amortization during the reporting period.

(9) The closing balance of Deferred tax assets increased by 590.55% compared to the opening balance in this year. It was mainlydue to the increase in provision for deferred income tax as a result of the increase in provision for impairment of assets during thereporting period.

(10) The closing balance of Notes payable decreased by 49.79% compared to the opening balance in this year. It was mainly due

to the maturity of bankers' acceptances during the reporting period.

(11) The closing balance of Taxes and rates payable increased by 38.44% compared to the opening balance in this year. It wasmainly due to the increase in operating revenue during the reporting period, which affected the increase in value-added tax andenterprise income tax payable.

(12) The closing balance of Other payables decreased by 34.76% compared to the opening balance in this year. It was mainly dueto the decrease in the refund of deposit guarantee and provisional payments receivable during the period under review.

(13) The closing balance of Other current liabilities increased by 38.58% compared to the opening balance in this year. It wasmainly due to the increase in advance receipts of goods during the reporting period, which affected the increase in sales tax to betransferred.

(14) The closing balance of Special reserve increased by 66.73% compared to the opening balance in this year. It was mainly dueto the increase in the provision for production safety expenses during the reporting period.

2. Income Statement Position

(1) Operating revenue in the current Q1-Q3 period increased by 43.31% compared to the same period of last year. It was mainlydue to the increase in volume and price of main products in the nutrition category in the current Q1-Q3 period.

(2) Operating Cost in the current Q1-Q3 period increased by 30.40% compared to the same period of last year. It was mainly dueto the increase in volume of main products in the nutrition category in the current Q1-Q3 period.

(3) Taxes and surcharges in the current Q1-Q3 period increased by 53.26% compared to the same period of last year. It was mainlydue to the increase in city maintenance and construction tax and education surcharge as a result of the increase in operatingrevenue in the current Q1-Q3 period.

(4) Financial expenses in the current Q1-Q3 period increased by 202.34% compared to the same period of last year. It was mainlydue to the decrease in foreign exchange gains in the current Q1-Q3 period.

(5) Other income in the current Q1-Q3 period increased by 43.01% compared to the same period of last year. It was mainly due tothe increase in government grants in the current Q1-Q3 period.

(6) Gains on changes in fair value in the current Q1-Q3 period increased by 107.17% compared to the same period of last year. Itwas mainly due to the increase in fair value as a result of exchange rate fluctuations in the current Q1-Q3 period.

(7) Credit impairment loss in fair value in the current Q1-Q3 period increased by 525.35% compared to the same period of lastyear. It was mainly due to the increase in credit impairment losses provided for changes in accounts receivable in the current Q1-Q3 period.

(8) Assets impairment loss in fair value in the current Q1-Q3 period decreased by 79.75% compared to the same period of last year.It was mainly due to the decrease in impairment losses on assets due to fluctuations in market prices of products in the currentQ1-Q3 period.

(9) Gains on asset disposal in fair value in the current Q1-Q3 period decreased by 111.63% compared to the same period of lastyear. It was mainly due to the decrease in assets disposed in the current Q1-Q3 period.

(10) Non-operating expenditures in fair value in the current Q1-Q3 period increased by 162.30% compared to the same period oflast year. It was mainly due to the increase in the scrapping of fixed assets in the current Q1-Q3 period.

(11) Income tax in fair value in the current Q1-Q3 period increased by 95.80% compared to the same period of last year. It wasmainly due to the increase in total profit in the current Q1-Q3 period.

3. Cash Flow Statement Position

(1) Net cash flows from operating activities in the current Q1-Q3 period increased by 74.33% compared to the same period of lastyear. It was mainly due to the increase in revenue and the rise in payment collection in the current Q1-Q3 period.

(2) Net cash flows from investing activities in the current Q1-Q3 period increased by 64.93% compared to the same period of lastyear. It was mainly due to the decrease in expenditure on the purchase and construction of fixed assets in the current Q1-Q3 period.

(3) Net cash flows from financing activities in the current Q1-Q3 period decreased by 328.44% compared to the same period of lastyear. It was mainly due to the decrease in bank loans obtained in the current Q1-Q3 period.

(4) Net increase in cash and cash equivalents in the current Q1-Q3 period increased by 627.71% compared to the same period of lastyear. It was mainly due to the increase in payment collection and the decrease in expenditure on the purchase and construction offixed assets in the current Q1-Q3 period.

Section Ⅱ Shareholders InformationⅠ Total Number of Common Shareholders and Number of Preferred Shareholders with Voting RightsRecovered and Information about Top 10 Shareholders

Unit: share

Hong Kong Securities Clearing CompanyLimited

Note: The Company’s special securities account for repurchase is attributable to the top 10 shareholders , who however did notparticipate in the presentation of such balances.

Shareholders holding more than 5% of shares, top 10 shareholders and top 10 shareholders with unlimited shares in circulationparticipating in the lending of shares in the transfer and financing business.

√Applicable □Not applicable

Unit: Share

Shareholders with holding proportion over 5% , the top 10 shareholders and the top 10 shareholders' participation in securities lending

and borrowing transactions

The top 10 shareholders and the top 10 holders of unlimited shares have experienced changes due to participating in the lending ofshares in the transfer and financing business compared to the previous period.

□ Applicable √ Not applicable

II Total Number of Preferred Shareholders and Information about Top 10 Preferred Shareholders

□ Applicable √Not applicable

Section III Other Significant Events

√Applicable □Not applicable

I Outward investment and signing of the Investment Cooperation Agreement.

The company held the sixth meeting of the ninth board of directors on July 17, 2024, and convened the first extraordinary generalmeeting of shareholders on August 2, 2024. Proposal on Outward Investment and Signing of the Investment Cooperation Agreementwas approved, and the company agreed to sign the Investment Cooperation Agreement with the Management Committee of TianjinEconomic and Technological Development Zone to invest in and construct a nylon new material project in the Nangang Industrial

Zone of Tianjin, with a total investment of about 10 billion yuan (subject to the actual investment). For details, please refer to therelevant announcements published by the company on July 18, 2024, and August 3, 2024, in the designated information disclosuremedia and http://www.cninfo.com.cn .

II Progress of the Forth Employee Stock Ownership PlanThe fourth phase of the Employee stock ownership Plan of the Company was reviewed and approved by the first extraordinarygeneral meeting of shareholders in 2023 held on June 26, 2023. The forth employee stock ownership plan is managed by theCompany itself, and the company's stocks are acquired and held by the Company through the secondary market purchase, with aduration of not more than 24 months. As of September 25, 2023, a total of 29,528,181 shares of the Company have been purchasedunder the fourth phase of the employee stock ownership Plan through the secondary market bidding transaction, accounting for

0.9553% of the Company's existing total share capital, with a total transaction amount of 479,442,157.08 yuan (excluding transactioncosts). The average transaction price was about 16.2368 yuan per share, and the company completed the target stock purchase of thefourth phase of the employee stock ownership plan. The lock-up period of the underlying shares acquired under the fourth employeestock ownership plan is 12 months, calculated from the date of the Company's announcement of the transfer of the last underlyingshares to the plan, from September 26, 2023 to September 25, 2024. As of September 25, 2024, the lock up period of the fourth phaseof the employee stock ownership plan has expired. For details, please refer to the Advisory Announcement on the expiration of thelock up period for the fourth employee stock ownership plan (2024-035) published by the Company on designated informationdisclosure media and http://www.cninfo.com.cn.

Section Ⅳ Quarterly Financial StatementsⅠ Financial statements

1. Consolidated balance sheet

Prepared by Zhejiang NHU Co., Ltd.

September 30, 2024

Unit: RMB Yuan

Items

Items

Items

Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong

2. Consolidated income statement for Q1-Q3

Unit: RMB Yuan

Items

Items

Net profit realized by the combined party in business combination under common control before the business combination in thecurrent period was 0.00 yuan, and net profit realized by the combined party in the previous period was 0.00 yuan.Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong

3.Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB Yuan

Items

Items

Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He JiangyongII Adjustments to financial statements at the beginning of the year of first implementation of newaccounting standards for the first time from 2024 onwards

□ Applicable √ Not applicable

III Independent Auditor’s ReportWhether the financial statements above have been audited by an independent auditor.

□Yes √ No

These financial statements have not been audited by such an auditor.

Board of Directors of Zhejiang NHU Company Ltd

October 24,2024