YANTAI CHINA PET FOODS CO., LTD
2025-04
NO.88 FEILONG ROAD, LAISHAN ZONE, YANTAI, CHINA / TEL：400-111-8698 / WEB：http://www.wanpy.com.cn
Ocial Wechat
ENVIRONMENTAL, SOCIAL ANDGOVERNANCE REPORT
About is Repois document constitutes the 2024 Environmental, Social, and Governance (ESG) Repo for YantaiChina Pet Foods Co., Ltd. (hereafter referred to as "China Pet Foods" or "the Company").In alignment with the principles of objectivity, standardization, transparency, and comprehensiveness,this repo provides a detailed account of the Company’s practices and peormance in sustainabledevelopment across three dimensions - environment, social responsibility, and corporate governance.It outlines China Pet Foods' actions and reections on sustainability management, addressesstakeholder expectations and concerns, and fosters eective communication with all relevant paies.
·Scope of the Report
is repo covers the period from Janua 1, 2024, to December 31, 2024. To ensure comparability and completeness,ceain sections of this repo include data from prior years where relevant.·Reporting Standards
is repo is primarily based on the following internationally and domestically recognized frameworks for ESG, sustainabledevelopment, and social responsibility: the Global Repoing Initiative (GRI) Sustainability Repoing Standards, InternationalOrganization for Standardization ISO 26000: 2010 - Guidance on Social Responsibility, the Hong Kong Stock ExchangeESG Repoing Guide, the State-owned Assets Supeision and Administration Commission (SASAC) Notice on Forwardingthe Research on the Preparation of ESG Special Repos for Listed Holdings of State-Owned Enterprises (SOEs), and the Self-regulato Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Repoing. Additionally,the repo incorporates indust-specic context and highlights the unique characteristics of the Company.·Data Sources
e data, information, and case studies presented in this repo are sourced from the Company’s public records and internalstatistics. Unless otherwise noted, all nancial gures are repoed in Renminbi (RMB). In case of any discrepancies betweenthe nancial data in this repo and the annual repo, the gures in the nancial repo shall prevail.·Report Access
e electronic version of this repo is available for download on the Shenzhen Stock Exchange website (www.szse.cn) andthe CNINFO website (www.cninfo.com.cn), where additional company information can also be found.
01 / 02YANTAI CHINA PET FOODS
About This ReportScope of the RepoRepoing StandardsData SourcesRepo Access
About China Pet Foods
Core BusinessCompany CultureCompany Milestones
Core Competitiveness
1.Brand Advantage ··················
2.Global Vision and Strategic Layout ··
3.Product Quality Advantage ·········
4.R&D Strength ·····················
5.Robust Risk Resilience ·············
Honors and Accreditations33
ESG Governance System
Sound Governance and Steady Operations
1.Sound Governance Structure ··················
2.Information Disclosure and Investor Relations ··
3.Investor Protection and Education ·············
4.Standardized Internal Control Framework ······
5.Fullling Tax Obligations with Responsibility ···
Green Development, Shared Prosperity
1.Environmental Compliance and Management ···
2.Clean Production ·····························
3.Solar Photovoltaic Project ····················
4.Use of Biodegradable Packaging Materials ·····
.Environmental Training and Awareness Promotion··
Greener World, Smarter Future
1.Canada Facility ·······························
2.New Zealand Facility ··························
3.U.S. Facility ···································
People First:
Building a Ful?lling Workplace
1.Overall Employee Prole ··················
2.Compensation and Promotion Policies ······
3.Workplace Safety ··························
4.Professional Skills Development ············
5.e 26th Anniversa of China Pet Foods ····
6.Employee Benets Policy ···················
7.2024 Recognition Ceremony ················
8.A Warm Journey Home ·····················
9.Pet-Friendly Spaces ·······················
10.Employee Representative Conference ····
Protection of Supplier, Customer, andConsumer Rights
1.Supplier Management ····················
2.Customer and Consumer Rights Protection
1.Rooted in Real Economy ···················
2.Bringing Chinese Brands to the World ······
3.Driving Indust Development ··············
4.Public Welfare and Animal Rescue ··········
CONTENTS
Public Relations andSocial Welfare Programs
Driving Industrial UpgradingThrough Innovation
Product Safetyand Quality
Indices of Guidelines Topics
Looking Ahead
YANTAI CHINA PET FOODS 05 / 06
About China Pet Foods
YANTAI CHINA PET FOODS
YANTAI CHINA PET FOODS 07 / 08
Company Oveiew
Founded in 1998, China Pet Foods has been dedicated to the pet food industfor 27 years. As a pioneer in China's pet food sector, the Company has growninto a top-tier enterprise within the broader domestic pet indust.On August 21, 2017, China Pet Foods was listed on the Shenzhen Stock Exchange(Stock Name: China Pet Foods; Stock Code: 002891), becoming the rst pet foodcompany in China to go public on the Shenzhen Stock Exchange (SZSE).
As a trailblazer in China's pet indust, China Pet Foods has remained dedicated to the petfood sector. e Company specializes in the research, development, manufacturing, anddistribution of a wide array of products for dogs and cats, including d foods, wet foods,treats, and dieta supplements. It is among the companies with the most extensive productlines and the most diverse range of oerings in China’s pet food indust.e Company’s brand pofolio includes well-recognized names such as WANPY?, ZEAL?,and TOPTREES?. WANPY? has been recognized as a China Famous Trademark, makingChina Pet Foods the rst company in the pet food sector to receive such distinction.Pursuing a global strategy, China Pet Foods has steadily expanded its international footprint.e Company operates 22 state-of-the-a production facilities worldwide, with exposreading 85 countries across ve continents. Its proprieta brands are now sold in 73countries. rough a consistent focus on international development and simultaneous globalmarket expansion, China Pet Foods is steadily establishing itself as a leading player in the petfood indust - backed by a global vision, strategy, and operational presence.Guided by our philosophy that “Pets are our friends and pa of our family”, China Pet Foodshas, for 27 years, approached pet food production with the same care and standards aspreparing meals for loved ones. e Company remains committed to delivering nutritious,healthy, and palatable food for our beloved dogs and cats around the world.
中宠股份产业园中国·烟台
YANTAI CHINA PET FOODS
YANTAI CHINA PET FOODS 09 / 10
Core BusinessChina Pet Foods is primarily engaged in the research, development, production, and sale of pet food, witha product pofolio that covers d food, wet food, treat and health supplement for both dogs and cats -each comprising multiple product lines. ese include, among others, fresh meat series, d food and wetfood series, freeze-dried treat, baked food, chicken treats, duck treats, beef treats, sh treats, pet biscuits,and dental series. In total, the Company oers more than 1,000 distinct products across over a dozenproduct series.
Company Culture
D FoodsWet Foods
Pet Treat
Health Supplement
Our PhilosophyOur Mission
Our VisionCore Value
Pets are our friends and paof our family.
Promote the healthy,standardized and high-qualitydevelopment of China’s petindust.
To be the leading enterprisein global pet food indust.
Customer, Quality,Innovation, Responsibility
YANTAI CHINA PET FOODS 11 / 12
CompanyMilestones
1998
Mr. Hao Zhongli, founder of China Pet Foods,transitioned from the foreign trade food sector toenter the pet food indust. He leased a facilityto produce premium chicken jerky treats for pets,and successfully expoed the products to Japan,making the Company the pioneer in the China’spet food indust.
1999
e Company began sellingchicken jerky products under itsproprieta brand WANPY?,establishing WANPY? as the go-to brand for chicken jerky in China.
2003
With expanding sales, China PetFoods invested in a new facility(rst facility) in the LaishanEconomic Development Zone,Yantai. Built to standards forhuman food expos, the facilityachieved world-class levels in bothinfrastructure and operation, andwas registered with the U.S. Foodand Drug Administration (FDA).
2005
e Company completed and broughtonline its dedicated pet wet food plant(second facility）- China’s rst of itskind at the time.
2019
2021
e Company commencedconstruction of a premium pet wetfood facility in New Zealand, with atotal investment of RMB 230 million.
2022
·e Company commenced constructionof Phase III of its industrial park,investing RMB 100 million to build theindust’s rst raw material processingplant in China. e facility was ociallycommissioned in March 2023.· China Pet Foods signed a strategiccooperation agreement with ChinaAgricultural University in Beijing.Centered on advancing pet foodnutrition and health, the panershipleverages the strengths of both paiesto promote in-depth collaboration acrossindust, academia, and research.·China Pet Foods commenced operationsat its intelligent d food plant—anRMB 400 million project built on 100mu of land, with an annual capacity of100,000 tons. e launch of this “5.0Sma Manufacturing” facility markedthe establishment of the world’s mostadvanced d food production baseunder China Pet Foods.
2023
To enhance sterilizationoutcome and ensure theeciency of its processes,China Pet Foods establishedthe Yantai China Pet Foods -Huada Irradiation SterilizationCenter, with a designedannual sterilization capacity of50,000 tons. e facility beganoperations in April 2023.
2024
China Pet Foods signed a strategic panershipagreement with SAP, becoming the rstcompany in China’s pet indust to formalizesuch a collaboration - ushering in a new era ofdigital transformation for the indust.
2007
e third facility, focused on pettreats, commenced its operation. Tostrengthen its domestic sales eos,China Pet Foods established YantaiWANPY? Pet Products Sales Co., Ltd.,a subsidia dedicated to sales anddistribution within China.
2008
e Company beganconstruction of its fouhfacility - a joint venture withJapan’s leading corporation,IRIS. is state-of-the-a site, located in Yantai,was developed as one ofthe world’s most advanced
2012
China Pet Foods panered withVitakraft, a renowned Germanpet company with 189 years ofhisto, to begin construction ofits d food plant (fth facility).e plant was completed andbegan operations by the end ofthe year, marking the rst Sino-German joint venture in China'spet indust.at same year, the Companywas awarded as a NationalHigh-Tech Enterprise,underscoring its long-standingcommitment to research anddevelopment since its founding.
2013
WANPY? was recognized as a “ChinaFamous Trademark”, the rst in thecount’s pet food indust.
2015
·On August 21, 2017, China Pet Foods wassuccessfully listed on the Main Board ofthe Shenzhen Stock Exchange, becomingthe rst pet food company in China to gopublic on this platform.·at same month, the Company madea strong impression at the 20th Pet FairAsia, showcasing its full brand pofolio.China Pet Foods invested heavily andcommissioned U.S. adveising rm MoxieSozo to design new packaging for itsagship brand, WANPY?, conveying themessage: “Beauty and Quality, GloballyAligned.” During the event, the Companyalso concluded the inaugural WANPY?Cup China Pet Photography Contest.
·China Pet Foods’ Canadian facility - built with a totalinvestment of USD 16 million - was completed andbegan operations. It has since become the largest pettreat facto in Canada.·e Company brought its rst IPO-funded project,the world’s largest pet treat facto (ninth facility) intooperation.·e Company ocially launched its new R&D Center,with a total area of over 12,000 square meters.e Center encompasses multiple facilities, including:
(1) New Product Development Center;
(2) Testing Center;
(3) Research Center for Pet Nutrition and Health,
(4) e Institute of Pet Nutrition and Health.
·China Pet Foods acquired 100% equity in the pet foodcompany behind the New Zealand brand ZEAL? - fuheradvancing the Company’s global strategic footprint.·China Pet Foods completed construction of its modernlogistics center, with an investment of over RMB 100million. e facility was built to suppo the Company’srapid growth needs.
20172018
·e Company commenced construction of a newwet food facility - an IPO-funded project with atotal investment of RMB 400 million. Occupying 70mu of land and encompassing a total constructionarea of 45,000 square meters, the plant wasdesigned with an annual production capacity of50,000 tons, making it the largest pet wet foodfacility in the Asia-Pacic region. Operationsocially began in December 2020.·China Pet Foods invested in the constructionof a pet treat facility in Cambodia. With a totalconstruction area of 20,000 square meters anda designed production capacity of 6,000 tons, itbecame the largest pet treat facto in the count.e facility began operations in March 2020 andachieved protability within the same year.
China Pet Foods completedconstruction of a $28 million pet treatfacility in Southern California - thenthe largest of its kind in the UnitedStates. Remarkably, the plant beganproduction and achieved protabilityin the same year. is milestonemarked the rst instance of a Chinesepet food company investing inmanufacturing in a developed count,signaling a major step forward in theCompany’s international development.
YANTAI CHINA PET FOODS 13 / 14
Core Competitiveness
1.Brand Advantage
In addition to gaining a strong foothold in China’s mid- to high-end market through its core brands- WANPY?, ZEAL?, and TOPTREES? - China Pet Foods has positioned the globalization of its self-owned brands as a key engine of its international expansion. Leveraging brands such as WANPY?,ZEAL?, TOPTREES?, Great Jack’s?, Jerky Time?, and TRULY?, the Company has established a robustglobal presence, with products now expoed to 73 countries across ve continents.anks to consistent product quality and precise market positioning, the Company’s internationalbusiness has continued to grow steadily, accompanied by rising brand impact across the world.Looking ahead, China Pet Foods will fuher advance its globalization strategy - leveragingtechnological innovation and brand building to strengthen its competitive edge in the globalmid-to high-end pet food market and establish a Chinese brand with global inuence.
Guided by the philosophy of “Pets are our friends and pa of our family” China Pet Foods is committedto cultivating and maintaining a trusted brand image in the pet food indust. Following years of deepengagement in the market, the Company has successfully developed a pofolio of proprieta brands- led by WANPY?, ZEAL?, and TOPTREES? - forming a distinctive brand matrix tailored to meet thediverse preferences and needs of pet owners across various consumer segments.rough ongoing expansion and brand-building eos, China Pet Foods has earned strong consumerrecognition and trust. As a leading force in driving domestic substitution, the Company sits at theforefront of homegrown brands making inroads into the mid- to high-end market segment.
Uniform QualityGlobally Shared
YANTAI CHINA PET FOODS 15 / 16
27 Years of TrustChosen by Pets in 73 Countries
In 2024, WANPY? launched its 100% Fresh Meat Complete and Balanced Cat Food, positioned for the mid- to high-end market.is upgraded grain-free series features a high fresh meat content and advanced freshness-locking process. At the WANPY? 5.0Sma Facto, fresh meat ingredients undergo a dual-track quality control system - 25 inspection steps and 49 data monitoringpoints - to ensure optimal quality. e production line, customized by Bühler (one of the world’s two leading equipment suppliers),enables exible manufacturing with a rapid 45-minute switch between dierent product types and formulations. All processingpipelines are made from pharmaceutical-grade 316L stainless steel and operate around the clock, ensuring that eve stage ofproduction meets human food-grade safety standards.
WANPY? Little Golden Shield 100% Fresh Meat
Launched in 1998, WANPY? is China Pet Foods’ longest-standing and most widely recognized corebrand. It was also the rst pet food brand in China to receive the China Famous Trademark designation- an indust milestone. Since its inception, WANPY? has remained true to its product innovationphilosophy - Quality, Innovation, and Fun, successfully cultivating a brand image that is warm,energetic, and playful.WANPY? products are sold across ve continents and in 73 countries. As its brand strategy continuesto take root, the belief “Healthy Pets, Happy Play” has fuher strengthened WANPY?’s reputationand visibility among domestic brands, helping to lay the groundwork for a defensible brand position.With its commitment to fresh at the source, WANPY? is setting the benchmark for fresh meat petfood through its “Five Fresh” framework: Fresh Distance, Fresh Speed, Fresh Standard, Fresh Nutrition,and Fresh Kitchen - redening what fresh meat pet food truly means.
When technology and responsibility come together, even the smallest piece of pet food carries a sense of care andcommitment. On 15 March, People’s Daily Online’s “Transparent Facto” livestream oered viewers a close-up look at ChinaPet Foods’ WANPY? 5.0 Sma Facto and its full production line, uncovering the process behind the making of this globallytrusted pet food made in China.
WANPY? × People’s Daily Online: Inside the World-Class WANPY? Facto
As one of China’s leading national news platforms, People’s Daily Online has earned its reputation as a trusted voice throughauthoritative, timely, wide-ranging, and insightful repoing. Its “Transparent Facto” livestream series seeks to foster corporateopenness by oering the public a direct view into production processes - enabling consumers to witness the skill and qualitybehind "Made in China" rsthand. By paicipating in the Transparent Facto initiative, WANPY? not only demonstrated itscondence in product quality, but also showcased the high standards and advanced capabilities of “Intelligent Manufacturingin China” to a global audience.
TOPTREES? is the premium pet food brand under China Pet Foods. Founded on theprinciples of fresh ingredients, scientic formulation, and cutting-edge technology, thebrand is dedicated to creating innovative, high-quality nutrition tailored to the health andgrowth needs of dogs and cats, with a focus on delivering a truly reassuring experience forpet owners. Its product pofolio spans both canine and feline categories, including d food,wet food, and treats.On April 8, 2025, TOPTREES?, China Pet Foods’ core proprieta brand, signed apanership agreement with CCTV, earning the prestigious "CCTV Excellence in Qualityand Manufacturing" recognition. is makes TOPTREES? the rst brand in China’s pet foodindust to secure a strategic collaboration with CCTV.
Pouring Innite Love into Finite Lives,
with Respect and Care
Co-branded Promotional Poster: TOPTREES? × Empresses in the Palace
TOPTREES? Product Series
Eve honor lifts us higher.In 2025, we continue to stay on top!TOPTREES?: Toptrees Youth Key Visual
YANTAI CHINA PET FOODS 21 / 22
ZEAL? was a brand owned by the Natural Pet Treat Company (NPTC), based in New Zealand. In 2018,China Pet Foods acquired the brand ZEAL? and, leveraging its global supply chain platform, successfultransformed and relaunched ZEAL? into the global market in 2019. Today, the brand oers pet ownersaround the world a comprehensive range of premium, New Zealand–made products - including air-driedfood, wet food, treats, cod liver oil, and specially formulated milk for cats and dogs - available in over 30countries and regions.Guided by the philosophy “True to Nature, Pure by Origin,” ZEAL? rmly believes that the bestnutrition comes from nature itself. Its uncompromising commitment to quality - embodied in its “zerocompromise” product ethos - has earned the trust of consumers over many years. From its decade-long best-selling Air-Dried Treats, popular Grain-Free Canned Food, to its star product Lactose FreePet Milk, ZEAL? has consistently delivered excellence in both product quality and brand character. In2024, ZEAL? launched New Zealand’s rst natural air-dried food, crafted with exceptionally rare andluxurious ingredients that account for just 1% of global supply. Consumers increasingly associate ZEAL?with qualities such as natural, pure, rare, and trustwohy. e values of originality, natural nutrition, andauthentic avor continue to shape ZEAL? as a leading brand of premium New Zealand–made pet food.
Driven by a passion for natural food, a commitment to environmental sustainability, and a deeprespect for nature, New Zealander Harjit Sidhu founded the natural pet food brand, ZEAL? in 1999."Uncovering the secret to premium nutrition from one of the world’s most pristine environments".
ZEAL? × Never’s Family
ZEAL? made a splash through itscollaboration with Never’s Family,the well-known pet IP associatedwith top Taobao livestreamerAustin Li.
ZEAL? holds the FernMark License, New Zealand’sprestigious national quality ceication, as well asthe ocial RMP ceication, and is included in theNew Zealand Food Safety Authority (NZFSA) RiskManagement Program. In August 2024, China Pet Foods’New Zealand facility was honored with the NZCBIASpecial Contribution Award, presented in person byNew Zealand Prime Minister Christopher Luxon -an event that celebrated the strength of intelligentmanufacturing from China.
Founded in 1970, Dogster is one ofthe world’s most widely read caninemagazines, celebrated for its warmth,humor, and genuine love for dogs, aswell as its depth of expeise. Witha strong editorial team of veterinaprofessionals and contributions fromcanine writers and expes worldwide,the magazine ensures its health-related content is accurate, timely, andauthoritative.In 2024, ZEAL? Canada Gently Air-Dried Dog Food was ranked Top 1 inDogster’s “6 Best Air-Dried Dog Foodsof 2024” and also placed Top 3 in the“Best Air-Dried Dog Food of 2024” byCeied Pet Care (CPC), earning dualinternational accolades for productexcellence.
New Zealand Prime Minister Christopher Luxon Presenting Award to China Pet Foods
2018
2015
2.Global Vision and Strategic Layout
With over two decades of experience in the pet food indust, China Pet Foodshas evolved into a multinational enterprise with a global perspective and strategicinternational footprint. Its manufacturing operations spans ve countries: China,the United States, Canada, New Zealand, and Cambodia. Notably, the launch of itsU.S. facility marked the rst instance of a Chinese pet food company establishingproduction in a developed market.Amid rapid growth in the pet indust, China Pet Foods continues to invest inbuilding a leading global supply chain platform. With a long-term, integratedapproach to capacity planning, the Company is focused on building a defensibleglobal supply chain dened by product quality, operational stability, and resilience.It currently operates 22 modern pet food production bases worldwide, along withan expe-level R&D center and a dedicated pet nutrition and health institute.Of these 22 modern factories, 14 are located in China and 8 overseas.
China Pet Foods invested USD 28 million to build what was then the largest pettreat facility in the United States. e plant became operational and protablewithin the same year. More notably, it marked the rst time a Chinese pet foodcompany had established manufacturing in a developed market. In 2023, workbegan on a second, larger facility to fuher increase production capacity.
China Pet Foods acquired 100% of the Natural Pet Treat CompanyLimited, a company with over 20 years of histo and the owner of thebrand ZEAL?, fuher advancing its globalization strategy.
e Company established the then largest pet treatfacto in Southeast Asia through an investmentin Cambodia. e facility became operational andprotable within the same year. Leveraging local rawmaterials and labor cost advantages, it sees ChinaPet Foods’ global supply chain. A second facility inCambodia is currently under construction.
Global Factories
2019
2018
2020
China Pet Foods invested RMB 230 million to build a high-end pet wetfood facility in New Zealand.
2021
China Pet Foods acquired a 70% stake in PetfoodNZ InternationalLimited, the largest pet canned food manufacturer in New Zealand, forapproximately RMB 154.5 million.
China Pet Foods invested USD 16 million to establish the then largest pet treatfacto in Canada. e facility produces the Company’s proprieta brands,including Great Jack’s? and Buddy Jack’s?, which have successfully entered majorNoh American retail chains such as Costco, PetSma, and Petco.
YANTAI CHINA PET FOODS 25 / 26
Pet food consumption is concentrated in developed markets such as the United States, Europe, andJapan, where the indust developed early and has since matured, with market share largely dominatedby established global brands. Over time, China Pet Foods has built a strong reputation for consistentquality and reliability, forming long-term panerships with leading brand customers across vecontinents. rough international sales cooperation and overseas joint ventures with these customers,the Company has established stable distribution channels and a global sales network.
In addition to gaining a strong foothold in China’s mid- to high-end market through its core brands - WANPY?,ZEAL?, and TOPTREES? - China Pet Foods has positioned the globalization of its self-owned brands as a key engineof its international expansion. Leveraging brands such as WANPY?, TOPTREES?, ZEAL?, Great Jack’s?, JerkyTime?, and TRULY?, the Company has established a robust global presence, with products now expoed to 73
countries across ve continents. anks to consistent product quality and precise market positioning, the Company’sinternational business has continued to grow steadily, accompanied by rising brand impact across the world. Lookingahead, China Pet Foods will fuher advance its globalization strategy - leveraging technological innovation andbrand building to strengthen its competitive edge in the global mid- to high-end pet food market and establish aChinese brand with global inuence.
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3.Product Quality Advantage
At China Pet Foods, product quality is regarded as the lifeline of the business. e Company maintains strict quality control at evestage - from the sourcing of raw materials to the production process and nal product delive. Ingredients used in the Company’score products are sourced exclusively from suppliers registered with relevant Chinese government authorities, in accordance withocially requirements. ese suppliers must meet national standards for parameters such as microbiological levels, drug residues,and heavy metal content.To fuher ensure product integrity, the Company has implemented a Comprehensive Traceability System and a Product RecallMechanism. ese systems enable full tracking of each product, from the specic materials used, to the production process andshipping. e batch numbers of raw, auxilia and packaging materials, their suppliers, storage times, and usage of each materialcan all be tracked, as can the production time, key processing steps, responsible personnel, and shipment details. is end-to-endvisibility ensures strict oversight and helps guarantee the safety and reliability of eve product delivered to market.
e Companion Animal Food Ingredients Conference is one of the most prominent events in China’spet food indust, dedicated to promoting innovation and advancement in pet food ingredients. Itsees as a vital platform for fostering collaboration between domestic and international enterprisesand is widely recognized as a key forum for leading indust players to exchange ideas and showcasetheir achievements. In April 2024, the fth Companion Animal Food Ingredients Conference was heldat the Yangzhou Conference Centre. e event welcomed representatives from the agricultural tradedepaments of several embassies and consulates, as well as senior gures from leading pet foodcompanies in China and abroad, who gathered to explore new avenues for international cooperation.Owing to its rigorous quality control and outstanding manufacturing standards, China Pet Foodsreceived the highest number of votes and was honored with one of the Conference’s most prestigiousawards - the “Six Ingredient Excellence Award.” is recognition highlights the Company’s industleadership and the broad acknowledgment of its comprehensive capabilities.
China Pet Foods Honored with the"Six Ingredient Excellence Award"
China Pet Foods and its subsidiaries have obtained a wide range of internationally recognized ceications, including ISO 9001(Quality Management), ISO 22000 (Food Safety Management), ISO 14001 (Environmental Management), HACCP (Hazard Analysisand Critical Control Points), GMP (Good Manufacturing Practice), and BRCGS Global Standard for Food Safety, among others. Intotal, the Company has passed 19 major global ceications, along with ocial registrations in several developed markets, includingthe United States, Japan, Canada, Australia, and the European Union. As one of the most comprehensively ceied pet foodcompanies in China, these credentials reect a high level of condence in the Company’s quality management systems and productconsistency. More impoantly, they also provide a solid foundation of quality assurance and credibility as the Company continuesto expand its presence in both domestic and international markets.e core themes of SMETA (Sedex Members Ethical Trade Audit) include labor standards, health and safety, environmental impact,and business ethics. BSCI (Business Social Compliance Initiative) audits focus on areas such as legal compliance, freedom ofassociation and collective bargaining, non-discrimination, fair compensation, working hours, workplace safety, prohibition of childand forced labor, as well as environmental protection and safety.China Pet Foods obtained both SMETA and BSCI ceications early on, underscoring its status as an internationally credible andsocially responsible enterprise. ese ceications arm the Company’s capability to full global orders and maintain a positivecorporate reputation. More impoantly, they reect the Company’s commitment to ethical and responsible business practices– both in collaboration with clients and throughout the supply chain – and its ongoing eos to uphold social responsibilitythroughout the course of its development.Since its founding, China Pet Foods has remained true to its original aspiration and philosophy “Pets are our friends and pa of ourfamily”. Guided by this belief, the Company is dedicated to providing healthy, nutritious, and delicious pet food to pets around theworld, while continuing to suppo the healthy, standardized, and high-quality development of China’s pet food indust.
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4.R&D Strength
For 27 years, China Pet Foods has remained true to its founding belief that “Pets are our friends and pa of our family”. Guided bythis philosophy and a commitment to consumer value, the Company continues to explore new frontiers in pet health and nutritionon a global scale. With a focus on meeting the nutritional needs of pets through eve stage of life and across all feeding and carescenarios, the Company’s innovation journey continues to evolve. Milestones include: the establishment and growth of China’srst garden-style pet testing base; the launch of a new R&D building; the expansion of a global expe adviso network; a jointinitiative with the Feed Research Institute of the Chinese Academy of Agricultural Sciences to co-develop indust standards forpet food ingredients; the integration of AI motion capture and big data analytics to study pet behavior; and recognition at the 5thCompanion Animal Food Ingredients Conference with the “Six Ingredient Excellence Award”. Eve step we take is grounded in careand science - to ensure that eve bite enjoyed by pets around the world is both nutritionally sound and safe.Over the past three years, China Pet Foods has independently initiated more than 20 R&D projects, with three approved at theprovincial level. e Company has led the development of over ten key scientic outcomes, several of which have addressedindust gaps and contributed to the sustainable growth of China’s pet food sector. To date, the Company holds 301 nationalpatents, including 15 invention patents, and has been recognized for several consecutive times as a National High-Tech Enterprise.Looking ahead, it will continue to increase investment in R&D, using innovation to drive industrial upgrades and deliver safer,healthier food for pets around the world.
China Pet Foods’ Testing Center, with a total investment exceeding 15 millionyuan, stands as the highest-standard testing facility in China’s pet indust. It isequipped with three main areas: the Physicochemical Laborato, MicrobiologyLaborato, and Instrumental Analysis Room.e Center utilizes advanced equipment, including liquid chromatography-mass spectrometers and Kjeldahl nitrogen analyzers, and is staed by a team ofhighly educated and qualied professionals. It holds accreditation from CNAS(China National Accreditation Seice for Conformity Assessment), ensuring itstesting capabilities meet national laborato standards, with results recognizedworldwide.
Spanning 10,000 square meters, the Pet Nutrition and Health ResearchInstitute features dedicated experimental, breeding, quarantine, and outdooractivity areas, making it the rst garden-style pet evaluation base in China.e Institute currently houses over 300 experimental dogs and cats from morethan 30 breeds. All of our “new” products undergo a six-month long feedingtrial before market release to ensure pets' acceptance of the product and thecomprehensiveness of its nutritional content.
Pet Evaluation Center
For more than 20 years, the R&D center at China Pet Foods has focused on market-driven innovation, developingnew products with an emphasis on nutrition, health, and science - helping to shape emerging trends in the pet foodindust. e Company’s research team includes over 150 professionals with backgrounds in food science, veterinamedicine, animal health, and nutrition, and is suppoed by a panel of nationally recognized advisors from the UnitedStates, Germany, Canada, New Zealand, and China.
China Pet Foods × Institute of Feed Research, CAAS:
Strategic Cooperation Agreement Ocially Signed
In November 2024, China Pet Foods formally entered into astrategic panership with the Institute of Feed Research ofChinese Academy of Agricultural Sciences (CAAS). As a leadinginstitution in animal nutrition and feed science since itsfounding in 1991, CAAS has brought together top-tier talentsand developed extensive expeise in research, technicaloutreach, and policy development, contributing valuablescientic insight for the advancement of this eld. roughthis collaboration, China Pet Foods will draw on CAAS’sscientic resources and talent network to fuher strengthenits R&D capabilities and technical strength - injecting freshmomentum into innovation across the pet food sector.As the panership deepens, China Pet Foods and theInstitute of Feed Research of CAAS will leverage theirrespective strengths to collaborate closely on key areas suchas nutritional balance, safety and traceability, and processoptimization. Together, they aim to advance the developmentand implementation of agricultural indust standards and seta benchmark for the transformation and upgrading of the petfood sector.
Pet Nutrition and Health Research Institute
Testing Center
e Pet Nutrition and Health Research Center oers comprehensive testing seices forpets, providing valuable data that drives the Company’s research and development eos.e Center includes facilities such as biochemical and routine testing laboratories, sterilerooms, immunology labs and ultrasound areas, as well as pathology rooms, all equippedwith instruments made by globally recognized names, such as American IDEXX ve-pa dierential hematology analyzer, biochemical analyzer, blood gas analyzer, and urineanalyzer; American BioTek ELISA microplate reader; Italian Esaote vet ultrasound equipment,Puxi UV-Vis spectrophotometer, and Germany Leica microscope. rough health testing,the Center assesses various factors such as the pet’s gut microbiome, antioxidant capacity,immune system, liver and kidney functions, cardiac function, blood glucose, and lipids. iscomprehensive health analysis ensures the well-being of pets while developing high-qualityproducts that better meet their nutritional and health needs.
Pet Nutrition and Health Research Center
China Pet Foods, CNIF and CLF：
Strategic Cooperation Agreement Ocially SignedIn March 2025, China Pet Foods entered into strategicpanerships with China National Research Institute of Food& Fermentation Industries (CNIF) and China Leather &Footwear Research Institute (CLF). e collaboration focuseson the innovative application of core technologies - such asfunctional peptides and collagen - in the pet food sector.Together, the paners aim to drive scientic innovation andindustrial upgrading, while jointly exploring a new integratedmodel of technology, indust, and social responsibility inChina’s pet food indust.
2651521
5.Robust Risk Resilience
In recent years, accelerating geopolitical shifts, coupled with slowing global growthand rising ination, have placed the world economy in a period of profoundadjustment. Against this backdrop of historic transformation, internationalunceainty has grown markedly, and businesses now face increasingly complexand overlapping risks. Escalating trade barriers, the threat of technologicaldecoupling, and the convergence of traditional economic and non-traditionalsecurity challenges all demand greater strategic resilience. Amid deep shifts in thisglobal governance landscape, the ability to manage risk and adapt with agilityhas become a critical competitive strength - and a prerequisite for a company’ssuival and growth.
Regarding the global supply chain, China Pet Foods has signicantly strengthened its riskresilience through a globally distributed production model. In addition to large-scale productionbases in China, the Company operates factories in the United States, New Zealand, Canada, andCambodia. is international footprint enhances its ability to manage unexpected disruptions
and regional risks, while meeting the needs of local markets and ensuring stable supply tocustomers worldwide.e Company’s commercial footprint is equally extensive, with products sold in 85 countries across ve continents.Its domestic business has grown rapidly, paicularly in self-owned brand segments, where independently managedoperations have scaled signicantly. Compared to the indust average, the Company shows notably lower reliance onany single customer or business line - fuher reinforcing the stability and risk resilience of its operations.
YANTAI CHINA PET FOODS 33 / 34
AccreditationsCorporate Honors
YANTAI CHINA PET FOODS 35 / 36
ESG
Governance System
YANTAI CHINA PET FOODS
Commitment to Sustainable DevelopmentChina Pet Foods actively suppos the United Nations Sustainable Development Goals(SDGs) and has embedded sustainability into its corporate strategy.e Company has set clear internal targets and detailed action plans to advance ESGpractices across all levels of its operations. With a strong sense of environmentalresponsibility, a rm commitment to social accountability, and a focus on improvinggovernance, China Pet Foods continues to contribute to the global sustainability agenda -demonstrating both determination and practical action in response to this worldwide call.
ESG Governance Structure
China Pet Foods is committed to establish an ecient and integrated ESG governance structure thatextends from the board of directors to functional depaments and individual employees. e BoardStrategy Committee sees as the central body for ESG oversight and is responsible for providingstrategic guidance and ensuring that ESG principles are embedded in top-level decision-making.To suppo implementation, the Company has formed a dedicated ESG working group taskedwith preparing and releasing the annual ESG repo, evaluating peormance, identifying risks andoppounities, and developing improvement plans. e group promotes eective execution throughcross-depamental coordination.Depament managers communicate the directive of the Strategy Committee and ESG working group toall employees, ensuring that sustainability goals - such as energy conseation and emissions reduction- are reected in daily work. Employees regularly log relevant data and repo it to their supeisors.ese records not only underpin ESG disclosures but also suppo review and continuous improvementof the Company’s ESG eos.
Material Topic Management and AssessmentDuring the repoing period, China Pet Foods carried out a systematic assessment of ESG material topics to identifythe issues most relevant to the Company’s operations and stakeholders. e aim was to provide a sound basis forthe development of ESG plans and corresponding actions. To ensure comprehensive coverage and well-groundedprioritization, the Company followed a structured process that included:
1. Reference to Authoritative Standards and Guidelines:
China Pet Foods initially screened ESG topics with reference to a range of domestic and international standards,including the Guidelines on Corporate Social Responsibility Repoing for Chinese Enterprises (CASS-CSR 4.0),the General Framework for Corporate Sustainability Repoing (CASS-ESG 6.0), the Global Repoing Initiative’sSustainability Repoing Standards (GRI Standards), China’s national standard Guidance on Social ResponsibilityRepoing (GB/T 36001-2015), and the SDG Compass: Guide for Business Action. ese frameworks helped ensurealignment with international best practices and regulato expectations.
2. In-depth Stakeholder Engagement:
China Pet Foods collected feedback on ESG topics from key stakeholders - including customers, employees,shareholders, suppliers, government agencies, and the general public - through a variety of channels such as sueys,written responses, conference calls, and inteiews. Combined with input from the Board Strategy Committee, thisprocess provided a multidimensional view of stakeholder expectations and concerns.
3. Indust Trends and Internal Risk Assessment:
e Company benchmarked ESG practices against domestic and international peers and examined developmentsin sectors such as IoT and semiconductors. ese insights, together with internal operational and strategicconsiderations, informed the evaluation of ESG-related risks and oppounities and helped identify topics critical tomid-to-long-term business development.
4. Materiality Assessment and Prioritization:
A materiality matrix was used to assess ESG topics based on two dimensions: their impact on business developmentand their impoance to stakeholders. e results were reviewed by the ESG working group before being submittedto the Board Strategy Committee for validation and nal prioritization.
Tax compliance,legal operation,safe production,
environmental
protectionLegal operation,tax compliance,economic contribution,
safe management,environmental protection,resource management
ESG Stakeholder EngagementChina Pet Foods places high impoance on active and close engagement with stakeholders. rough well-established communication mechanisms and diverse information channels, the Company listens to stakeholder views,ensures transparency and paicipation, and works to strengthen mutual understanding and trust. In light of itsevolving business and external environment, the Company has identied seven core stakeholder groups: customers,employees, developer communities, suppliers, investors, government bodies, and the general public/media.It closely monitors their priorities and concerns and responds in a timely manner through various channels to alignkey issues with stakeholder expectations, market trends, and strategic oppounities. By embedding stakeholderexpectations into its strategic planning and daily operations, China Pet Foods continues to enhance its sustainabilitymanagement and work collaboratively toward shared development goals.
Governments /Regulators
Supeision and inspection,
repoing, work repos,seminars and research
Shareholders /Investors
Suppliers /Paners
Customers
FinancialInstitutions
Community /Public
StakeholdersBoard ofDirectors
1. Dene the Company’s
ESG strategy and objectives.
2. Identify and oversee
ESG-related risks andoppounities thatsignicantly impact thebusiness.
3. Make decisions on major
ESG-related matters,including but not limited toESG management systemsand ESG repos.
4. Supeise the
implementation of ESGdevelopment directions andstrategic goals.
1. Implement the Company’s ESG strategy and
objectives, organizing and coordinating ESG eosacross depaments.
2. Organize the identication of ESG-related risks
and oppounities across various units, preliminarilyreview results, and repo ndings to the Board.
3. Draft ESG policies, related topics, phase-specic
plans, and implementation proposals.
4. Oversee the collection and compilation of ESG-
related data, prepare ESG repos and relateddocuments.
5. Communicate with consulting and rating
agencies, organize ESG business training, and trackESG policy requirements and trends.
6. Summarize issues and achievements in ESG
work, provide timely feedback to the Board, andoer recommendations for improvement.
1. Act as the
liaison for ESGwork acrossdepaments.
2. Assist in
executing relevantESG tasks basedon the ESGWorking Group’sinstructions andthe depament’sresponsibilities.
ESG Governance Structure and Functions
ESGWorking Groups
ESGSupportive Units
Communication andResponse Channels
Key ConcernsOur Responses
Employees
Shareholder meetings,peormance brieng,information disclosure,daily communication
Public tender procedures,integrated platforms,supplier evaluation system
Seminars,customer visits,satisfaction sueys
Business negotiations,visitor receptions
Employee representativemeetings, democratic reviewmeetings, seminars,questionnaire-based sueysPublic outreach activities,
eld trips,research,visitor receptions
Company development,transformation and reform,
protability,cost management,
information disclosure,technological innovationSupply chain management,standard operation,fair competition,compliance with contracts,seice quality,payment termsProducts and seices,
compliance,risk management,contract fulllment,integrity,quality management
Business peormance,operational risks,loan repaymentEmployee rights,career advancement,compensation and benets,occupational health,integrity,emergency assistanceCommunity collaboration,social welfare,rural revitalization
Improve protability,information transparency,timely communication,strengthen management
Provide quality seices and products,fulll contracts and uphold trust,supplier management and access
Fair and transparentprocurement,reasonable prices,ensure supply,
strategic cooperationnegotiations
Feedback on businesspeormance,timely repayment of loansCompensation guarantee,employee training,welfare benets,democratic management,improve work environmentand conditionsPovey alleviation,charity donations,
ecological protection
YANTAI CHINA PET FOODS 41 / 42
Sound Governance
and Steady Operations
YANTAI CHINA PET FOODS
1.Sound Governance Structure
Since its founding, China Pet Foods has established a robust corporate governance system in accordance with theCompany Law, Securities Law, and the Code of Corporate Governance for Listed Companies. e Company hasgradually developed and implemented a full set of internal governance rules, including the Rules of Procedure for theGeneral Meeting of Shareholders, Rules of Procedure for the Board of Directors, Rules of Procedure for the Board ofSupeisors, Rules of Procedures for Independent Directors, Working Rules for the President, Working Rules for theBoard Secreta, as well as detailed guidelines for the operation of each specialized board committee.is framework suppos a governance structure that aligns with regulato expectations for listed companies. Itensures coordination and checks and balances among the Company’s governing bodies, including the shareholder,decision-making, supeiso, and executive functions. e General Meeting of Shareholders, the Board of Directors,the Board of Supeisors, and the management team operate independently and in accordance with the law, eachfullling its respective rights, duties, and responsibilities - thereby safeguarding shareholder interests and suppoingcompliant operations.
Executive Management
In 2024, the Audit Committee convened fourmeetings and discharged its duties in accordancewith applicable regulations and provisions. eCommittee conducted in-depth reviews of theCompany’s nancial position and operationalpeormance, examined the periodic repos,assessed both routine and special audits carriedout by the internal audit depament, and evaluatedthe design and implementation of internal controlsystems. e Committee provided eectiveoversight and guidance on nancial managementand internal governance.
Audit Committee
In 2024, the Strategy Committee convened onemeeting. Taking into account global and domesticeconomic trends and the specic dynamicsof the indust, the Committee conducted athorough analysis of the Company’s operationalpeormance, growth prospects, and the risks andoppounities shaping the sector. It oered targetedrecommendations to suppo the execution of theCompany’s development strategy, helping ensurethe soundness of long-term planning and decision-making.Its work provided strategic guidance thatcontributed to the Company’s continued stablegrowth.
Strategy Committee
In 2024, the Compensation and AppraisalCommittee held two meetings. During the year,it reviewed and veried compensation mattersconcerning the Company’s directors and seniormanagement, and provided guidance onexecutive compensation strategy and planning.e Committee also reviewed the Company’semployee stock ownership plan, evaluatingits feasibility, incentive eectiveness, andpotential impact on the Company’s futuredevelopment - ensuring that the planeectively motivates employees, fosterscreativity, and contributes to the Company’ssustained and stable growth.
Compensation and Appraisal Committee
e Nomination Committee determinesselection criteria for directors and seniormanagement based on the Company’sevolving development needs, while activelyidentifying and evaluating qualiedcandidates to suppo future leadershippipeline. In 2024, the Committee heldone meeting, during which it fullled itsresponsibilities by reviewing the qualicationsof proposed candidates for board andexecutive positions.
Nomination Committee
In accordance with applicable laws - including the Company Law, SecuritiesLaw - and regulations and provisions, China Pet Foods has established astandardized corporate governance structure comprising the General Meetingof Shareholders, the Board of Directors and its specialized committees, theBoard of Supeisors, and the management team, to ensure the robust andeective implementation of governance policies and operational procedures.e Company has developed well-dened systems for internal controls,risk management, peormance incentives, accountability mechanisms, andinformation disclosure. Together, these elements form a modern governanceframework marked by institutional independence, mutual checks and balancesamong the shareholder, decision-making, supeiso, and executive functions,and a clear delineation of roles and responsibilities.e General Meeting of Shareholders sees as the Company’s highest authorityand the prima channel through which shareholders exercise their legal rights.Meetings are convened in strict accordance with the Aicles of Association andthe Rules of Procedure for the General Meeting, ensuring shareholders' rights toinformation and paicipation are fully protected.In 2024, the Company held three shareholder meetings - one annual and twoextraordina - during which 15 resolutions were reviewed and approved.All directors have peormed their duties in compliance with relevant laws,regulations and provisions, including the Guidelines No. 1 of Shenzhen StockExchange for Standardized Operation of Main Board Listed Companies, theCompany’s Rules of Procedure for the Board of Directors, and the Rules ofProcedures for Independent Directors. Directors actively attended meetings ofthe Board and the General Meeting of Shareholders, paicipated in training, andstayed current with legal and regulato developments. ey have fullled theirresponsibilities with integrity, diligence, and a strong sense of duty.During the repoing period, the Board of Directors convened seven meetingsand approved 34 resolutions, covering topics such as periodic repoing,employee stock ownership plans, prot distribution, and related-paytransactions. Director attendance was 100%.
All supeisors peormed their duties in strict accordance with relevant laws and regulations,including the Company Law, Securities Law, and the Guidelines No. 1 of Shenzhen StockExchange for Standardized Operation of Main Board Listed Companies, and the Company’sRules of Procedure for the Board of Supeisors. ey enhanced their professional capabilitiesthrough targeted training programs—including SZSE supeiso training and policy briengson regulato developments—and exercised comprehensive oversight of corporate governance,nancial peormance, and internal controls, contributing to the continued improvement of theCompany’s governance framework.e Board of Supeisors held ve meetings during the repoing period and approved 22resolutions. Supeisors fullled their responsibilities in full, providing oversight of the Company’scompliance, nancial operations, use of raised funds, related-pay transactions, externalguarantees, and internal control systems. Attendance was 100%.In addition, the Board ’s specialized committees continued to fulll their respectiveresponsibilities in advancing corporate governance.
2.Information Disclosure and Investor Relations
e Company’s stable operations are underpinned by the suppo of its investors. ChinaPet Foods regularly discloses key operational information, actively engages with investors,responds to inquiries, and addresses concerns. ese eos help strengthen the Company’scorporate image and reputation, enhance its visibility and recognition, and build long-termbrand value.
Following each annual, semi-annual, and quaerly repo,China Pet Foods engages with both institutional and retailinvestors in a proactive, timely, and transparent manner -through online platforms, as well as viual and in-personroadshows.e Company also holds regular investor educationsessions and peormance briengs, and respondspromptly to questions submitted via the SZSE InvestorRelations Interactive Platform (互动易).
Timely and Accurate DisclosureChina Pet Foods places strong emphasis on disclosure compliance. e Company strictly adheres tothe Company Law, Securities Law, the Administrative Measures for Information Disclosure by ListedCompanies, and other applicable laws and regulations, as well as the Rules Governing the Listing ofShares on the Shenzhen Stock Exchange and relevant self-regulato guidelines. To suppo this, theCompany has established a comprehensive internal system that governs the full disclosure process- from information collection and review to disclosing and archiving. Suppoing this system are keyin-house policies such as the Information Disclosure Management Policy and the Insider InformationRegistration and Management Policy, which clearly dene materiality thresholds, disclosure standards,and approval procedures, ensuring all disclosures are compliant and properly governed.e Company fullls its disclosure obligations in strict accordance with legal and regulatorequirements. It maintains clear lines of accountability, upholds the principles of timeliness and fairness,and ensures that all disclosed information is truthful, accurate, and complete. Condentiality protocolsand insider registration procedures are rigorously enforced to prevent insider trading and protectmarket integrity.
To ensure the clear transmission, consolidation, and eective management of materialmatters, and to suppo timely, truthful, accurate, and complete disclosure, whilesafeguarding the legitimate rights and interests of the Company and its investors - ChinaPet Foods has implemented a Material Matters Repoing Policy. e policy denes thescope of repoing personnel, procedures, and repoable items, covering areas suchas related-pay transactions, outbound investments, management of raised funds,guarantees, and material risk events. In the past, the complexity and cross-functionalnature of these matters often led to delays or inconsistencies in communication, aectingthe timeliness and accuracy of disclosures. e introduction of this policy has resolved keychallenges by establishing a clear repoing process for material matters, leading to moretimely disclosures. It has also helped standardize business procedures across depaments.In addition, China Pet Foods has designated China Securities Journal, Shanghai SecuritiesNews, Securities Times, and Securities Daily as its ocial disclosure outlets. e Companyproactively discloses, in a timely manner, all information that may materially aectshareholders or other stakeholders, ensuring equal access to information for all investors.In 2024, a total of 112 announcements were published through CNINFO and other ocialchannels, including 108 ad hoc disclosures and 4 periodic repos. e timeliness rate formaterial disclosures reached 100%, and the Company incurred no penalties related toinformation disclosure.
China Pet Foods regularly hosts its “Inside a Listed Company” series, designed to oer investors a well-rounded andimmersive engagement experience. During each event, the Company’s management team communicates openly andprofessionally - sharing insights into its strategic direction, operational peormance, and past peormance. e goalis to give investors a clear, structured view of the Company’s development journey.As pa of the experience, investors are invited to visit key facilities, including production workshops, the PetNutrition and Health Institute, and the R&D Center. ere, they obsee automated production lines running witheciency, and see how strict quality control measures are embedded at eve stage of the manufacturing process.From raw materials to nished products, the entire production journey is made visible - oering a direct view intothe Company’s strong production capabilities and uncompromising quality standards. Scientic sta also share theirlatest research ndings and innovative development philosophies, reecting the Company’s ongoing commitmentand strength in advancing pet nutrition and health.
ese visits give investors a more intuitive understanding of the Company’s production scale,technological capabilities, and operational eciency. By engaging directly with products, they developa more complete and nuanced view of the business from the consumer’s perspective. is kind of in-depth, hands-on engagement enables China Pet Foods to share clear and transparent information withinvestors - fostering deeper trust and stronger investor condence.e Company’s successful fundraising eos and rising market valuation in recent years reect not onlyits strong business peormance, but also the quality of its investor relations. Maintaining constructiveengagement with investors is essential to fostering a stable market environment. To this end, China PetFoods has built a communication platform dened by openness, dialogue, and transparency—helpinginvestors gain a clearer understanding of Company’s business and contributing to a healthy, mutuallybenecial ecosystem.
Active Investor Engagement
Commitment to Shareholder Returns
China Pet Foods places strong emphasis on delivering value to its investors and is committed toproviding sustained, stable cash dividends. By consistently sharing the Company’s operationalresults with shareholders, it seeks to enhance their sense of paicipation in the Company’sgrowth. In accordance with the Company Law, the Securities Law, and the CSRC’s No. 3 Guidelinefor the Supeision of Listed Companies – Cash Dividend Distribution of Listed Companies, theCompany has established and implemented a clear prot distribution policy. In 2024, it carried outdividend distributions for the 2023 nancial year and the rst three quaers of 2024, totaling RMB143,044,638.56 in cash dividends.Condent in its long-term prospects and recognizing its intrinsic value, China Pet Foods launched aShare Repurchase Plan to strengthen investor condence, protect shareholder interests, enhance itslong-term incentive mechanism, and encourage stronger engagement from management and keypersonnel. e initiative is also pa of the Company’s broader eos to suppo steady and sustainablegrowth. e Plan was reviewed and approved at the 26th meeting of the third Board of Directors onMarch 28, 2023, and subsequently rst extraordina General Meeting of Shareholders on April 14, 2023.In 2024, the Company repurchased a total of 1,278,700 shares through centralized bidding transactions,with a total value of RMB 29,159,746.00 (excluding transaction fees).
YANTAI CHINA PET FOODS 51 / 52
3.Investor Protection and EducationSafeguarding consumer rights is closely tied to public well-being, and a vital pa ofseing the public interest. It reects a people-centered development philosophy andsees as a cornerstone for the healthy, sustainable growth of the nancial sector. Asboth a contributor and advocate in Yantai’s nancial landscape, China Pet Foods activelyadvanced investor education and protection eos in 2024. e Company worked toboost public condence in nancial seices and championed the values of responsibleoversight and nance that sees the public good.
In May 2024, China Pet Foods actively paicipated in the “5.15National Investor Protection Publicity Day” campaign, held underthe theme “Protecting Investors, Shandong in Action.” Using itsocial website and other channels, the Company encouragedboth investors and employees to strengthen risk awareness andadopt a rational investment mindset.
e Company’s governance practices extend well beyond the four areas outlined above.From the independent operation of the Board of Directors, the Board of Supeisors,and the General Meeting of Shareholders, to the ongoing renement of internal controls,the deployment mechanism of investment and nancing decisions, and the shareholderreturn system - China Pet Foods operates has carried out extensive planning andmanagement based on legal frameworks and practical business needs.Our vision is “To be the leading enterprise in the global pet food indust” - a goalthat continues to guide our development. As the pet economy expands into a vast blueocean, China Pet Foods is well-positioned to cha an even broader course, backed byrobust governance, strong foundations, and proven operational capabilities.
4.Standardized Internal Control Framework
Operating in a dynamic business environment, China Pet Foods faces a range of unceainties in its daily operations. To mitigate therisk of occupational fraud - whether from internal personnel or external paners - and to safeguard the interests of the Companyand its shareholders, the Company formally joined the China Enterprise Anti-Fraud Alliance in Februa 2022 and became a memberof its Working Committee. e Alliance is a non-prot organization committed to fostering a clean business environment throughplatform collaboration, resource integration, and data sharing. It helps establish workplace misconduct records and enhances itsmembers’ anti-fraud capabilities. Founding members include indust leaders such as Alibaba, Count Garden, Midea, SF Express,and Vanke. Today, the Alliance comprises more than 950 member companies, over half of which are A-share listed rms. It oersseices such as resource pooling, blacklist sharing and suppo for cross-regional fraud investigations. Joining the Alliance marksan impoant step in China Pet Foods’ ongoing eos to strengthen risk management, improve fraud prevention mechanisms, andprotect the legitimate rights and interests of the Company and its shareholders.As a leading enterprise in China’s pet food indust, China Pet Foods is committed not only to business excellence but also tofostering a clean, honest, and transparent operating environment. rough cross-indust collaboration and knowledge-sharing,the Company aims to fulll its broader social responsibilities while suppoing healthy and rapid growth.Internally, China Pet Foods has implemented a range of anti-fraud measures, including the Anti-Fraud ManagementPolicy, Whistleblower Protection and Incentive Policy, and Policy on the Repoing of Gifts and Moneta Benets - fostering arobust institutional rewall against misconduct and reinforcing a culture of integrity. To fuher embed anti-fraud awareness andguide employee day-to-day behavior, visual reminders are displayed throughout the Company. ese include the Ten IntegrityGuidelines in oce areas, the Bid Opening Code of Conduct at tender sites, and whistleblowing posters at exit and ent pointsacross all facilities. Collectively, these measures help strengthen employee vigilance against fraud and bribe, and suppo acorporate culture anchored in ethical conduct. In doing so, the Company continues to lay the foundation for sound, compliant, andhigh-quality growth.Moreover, China Pet Foods has placed strong emphasis on internal audit and made solid progress in advancing acomprehensive audit program. In 2024, audit activities covered a wide range of critical operational areas - fromcapital management to digital process development. Key reviews included audits of idle xed assets, internal controlsover moneta funds, and sales operations. ese eos have strengthened the Company’s internal managementand risk controls, while rearming its commitment to social responsibility. e audit program continues to suppothe Company’s long-term competitiveness and sustainable development.
5.Fullling Tax Obligations with Responsibility
China Pet Foods recognizes the vital role of tax compliance in suppoing national governance and social progress.Guided by the Enterprise Income Tax Law of the People’s Republic of China, the Company has put in place adedicated Tax Management Policy. In day-to-day operations, it maintains strict oversight over tax-related processes- from invoice control to account reconciliation - ensuring eve step is handled with rigor and consistency. At thesame time, the Company continues to rene its tax planning framework, balancing sho-term arrangements andlong-term strategic considerations to optimize tax management comprehensively.e Company remains ale to potential risks and has established a sound system for monitoring and managing tax-related matters, ensuring its operations remain stable and compliant. Committed to fullling its tax obligations in fulland on time, China Pet Foods provides solid suppo for the stable growth of national scal revenues - contributingto public investment in infrastructure, social welfare, and technological innovation. rough concrete actions,the Company brings its corporate responsibility to life, helping to drive high-quality economic growth and socialharmony, while underscoring its value as a corporate citizen in advancing national strategies and seing the broadergood.In 2024, the Company and its subsidiaries contributed over RMB 120 million in taxes.
YANTAI CHINA PET FOODS 55 / 56
Green Development,
Shared Prosperity
YANTAI CHINA PET FOODS
1.Environmental Compliance and Management
China Pet Foods strictly complies with all applicable environmental laws and regulations, includingthe Environmental Protection Law of the People’s Republic of China, Environmental ImpactAssessment Law of the People’s Republic of China, Water Pollution Prevention and ControlLaw of the People's Republic of China, Air Pollution Prevention and Control Law of the People'sRepublic of China, and the Law of the People's Republic of China on the Prevention and Control ofEnvironmental Pollution by Solid Wastes.e Company continues to improve its environmental management system to protect ecosystems,enhance resource eciency, promote cleaner production, and advance sustainable development.e Company is ceied to the ISO 14001 Environmental Management System and has beenawarded the ceicate.
Environmental Impact Assessment and Emissions Control
All new projects undergo environmental impact assessments in accordance with the EnvironmentalImpact Assessment Law and the Regulations on the Administration of Construction ProjectEnvironmental Protection. e Company adopts low-energy, high-eciency environmental protectionequipment to minimize project-related impacts on surrounding areas. In line with the Regulations onthe Administration of Permitting of Pollutant Discharges, we strictly manage pollutant emissions anddischarges to ensure that both the concentrations and total volumes remain within the permitted levels.
Wastewater ManagementChina Pet Foods operates three fully enclosed wastewater treatment facilities with daily processingcapacities of 1,500 tons, 500 tons, and 100 tons, respectively. Using the AOAO treatment process,wastewater from production is carefully treated and discharged only after meeting the requirementsof GB/T 31962-2015 – Water Quality Standards for Discharge to Municipal Sewers.To ensure compliance, the discharge outlet is tted with a standardized sampling po and onlinemonitoring systems that track COD, ammonia nitrogen, total phosphorus, total nitrogen, pH, and owrate. ese systems are connected to environmental authorities at various levels, allowing for real-time data sharing and regulato oversight. A qualied third-pay agency is engaged to compare andverify the accuracy of monitoring instruments, providing an extra layer of assurance. Fuhermore,the Company enhanced its treatment system with the addition of a phosphorus removal system -protecting water resources and helping to safeguard the environment, where eve drop matters.
Air Emissions Management
China Pet Foods manages air emissions in full compliance with national environmental standards,including the Emission Standard of Air Pollutants for Boilers (GB 37/2374-2018), the Integrated EmissionStandard of Air Pollutants (GB16297-1996), and the Emission Standards for Odor Pollutants (GB 14554-1993). e Company uses natural gas - one of the cleanest available fuels - for its steam boilers andapplies low-nitrogen combustion technology to reduce emissions from the source and during operation,minimizing the release of air pollutants.Odorous gases from the wastewater treatment plant are fully enclosed, collected, and treated using acombined water-spray and microwave photo-oxidation process before being discharged in accordancewith regulations. In addition, the Company has taken targeted measures to manage both organized andfugitive emissions generated during production. High-eciency treatment facilities and equipment areused to reduce pollutant discharge. During the repoing period, all air emissions remained well withinregulato limits.
Solid Waste ManagementChina Pet Foods, guided by Xi Jinping’s ought on Ecological Civilization and committed to greendevelopment, adopts a holistic approach to solid waste management. e Company actively promotesreduction, recove, and safe disposal through sound policies, source control, soing and reuse anddigital tracking. A comprehensive prevention and control framework is in place to address solid wastepollution. Green procurement is practiced from the source. All general industrial waste and hazardouswaste is handled by qualied third-paies in compliance with regulations, ensuring end-to-end wasteoversight - from cradle to grave.In terms of household waste, the Company provides clearly labeled bins and works with local sanitationseices to ensure daily collection and harmless disposal. It also promotes the “Clean Plate” campaign,encouraging the use of reusable tableware and proper handling of kitchen waste. Hazardous waste isrepoed in full compliance with requirements via the Shandong Provincial Platform for Solid Waste andHazardous Chemical Management, covering waste types, volumes, destinations, storage, and disposal.
YANTAI CHINA PET FOODS 61 / 62
2.Clean Production
As a manufacturer of pet food, China Pet Foods generates wastewater and air emissionsas pa of its operations. In line with the Notice on Fuher Promoting the Review ofCleaner Production in Key Industries ([2020] No. 27) issued by the Depament of Scienceand Finance, General Oce of the Minist of Ecology and Environment, and the Noticeon 2024 Mandato Cleaner Production Audit List ([2024] No. 48) issued by the ShandongProvincial Depament of Ecology and Environment, the Company carried out a cleanerproduction audit between May and November 2024.During this period, the Company implemented 12 cleaner production initiatives - 11classied as low- or no-cost, and one as medium- to high-cost. Total investment reachedRMB 1.65 million, generating estimated annual economic benets of RMB 1.43 million. eprogram delivered notable environmental and economic gains and fuher strengthenedthe Company’s commitment to cleaner production, aligning its peormance with bestpractices across the domestic indust.
3.Solar Photovoltaic Project
In October 2021, the Communist Pay of China Central and the StateCouncil joint released the Working Guidance for Carbon Dioxide Peakingand Carbon Neutrality in Full and Faithful Implementation of e NewDevelopment Philosophy. e Guidance called for the integration ofcarbon peak and carbon neutrality into the broader framework of nationaleconomic and social development - a major strategic move toward greenproduction, energy eciency, and cleaner manufacturing. In alignmentwith these national priorities, China Pet Foods has made the dual-carbongoals as a key pa of its cost-reduction and eciency-improvementstrategy.e Company has invested actively in solar photovoltaic projects.Covering a total rooftop area of over 30,000 square meters, the two-phase solar initiative oers a combined installed capacity of 3.6 MWp.Since 2021, the system has generated a cumulative 13.41 million kWh ofelectricity, reducing carbon dioxide emissions by more than 11,000 tons.
Beyond its eos in energy conseation, China Pet Foodsalso fullls its environmental responsibilities throughsustainable material choices.Traditional packaging materials widely used in the marketoften contribute to environmental pollution and are dicultto recycle due to the inseparability of mixed materials. Toaddress this, the Company has adopted biodegradablecomposite materials for selected products. ese materialsrepresent a signicant advancement in both degradabilityand recyclability, and their use marks a key step in ChinaPet Foods’ commitment to environmentally responsiblebusiness practices.
China Pet Foods photovoltaic land
4.Use of Biodegradable Packaging Materials
5.Environmental Training and Awareness Promotion
To strengthen its environmental management and fulll its responsibilities as a corporate steward of the ecologicalenvironment, China Pet Foods conducted regular trainings and awareness campaigns on environmental regulations,environmental risk identication and mitigation, and the management of wastewater, exhaust emissions, andsolid waste. ese sessions not only enhanced employee awareness but also suppoed the Company’s long-termsustainability eos.
Environmental Training
Green Development
Environmental Complianceand Management
Clean Production
Solar Photovoltaic ProjectUse of BiodegradablePackaging MaterialsEnvironmental Trainingand Awareness Promotion
To strengthen its ability to respond to unexpected environmental incidents, China Pet Foods has put in place a formalemergency response plan, which is led with the relevant environmental authorities. In 2024, the Company carriedout a series of regular drills - ranging from hazardous waste spills to re scenarios. ese exercises are designednot only to improve on-the-ground response but also to connect environmental response protocols with overallworkplace safety procedures, ensuring that both plans work hand in hand when it matters most.
Environmental Emergency Drills
Environmental disclosure is a core component of eective corporateenvironmental management. In accordance with the AdministrativeMeasures for Legal (ESG) Disclosure of Enterprise EnvironmentalInformation issued by the Minist of Ecology and Environment,China Pet Foods publishes annual updates on its website. esecover key areas including company proles, environmentalmanagement practices, pollutant generation, treatment anddischarge, and emergency response. All information is disclosed inan accurate and timely manner, enabling eective public oversightand suppoing continuous improvement in our environmentalpractices.
Environmental Information Disclosure
Behind eve gure and milestone lies our steadfastcommitment to China’s dual-carbon goals. With along-term perspective on sustainability, we remaindedicated to lightening the planet’s burden - onestep at a time, for a brighter and more sustainablefuture.
YANTAI CHINA PET FOODS 65 / 66
Greener World,
Smaer Future
YANTAI CHINA PET FOODS
CANADA
1.Canada Facility
At its Canada facility, China Pet Foods has transformed regulato compliance into a source of competitiveadvantage by systematically building out four key pillars: safety, ethics, natural ingredients, and low carbon footprint.ese eos not only reect the brand’s core values, but also provide as a credible foundation for the Company’ssustainability-driven consumer marketing.
e facility places a strong emphasis on workplace safety, employee well-being,environmental responsibility, and business ethics and transparency. In terms ofworkplace safety, it is dedicated to providing a clean, secure environment, equippedwith advanced safety measures, and ensures employees receive regular training onhealth and safety to mitigate potential risks. On environmental protection, the facilitystrictly controls pollutant emissions during production, keeping them well belowregulato thresholds, and continuously advances eco-friendly practices to minimizeits environmental impact. Regarding business ethics and transparency, the facility hasimplemented a comprehensive anti-corruption framework to ensure transparency inall business transactions. Upholding fairness, justice, and compliance, it also ensuressupply chain transparency by regularly assessing suppliers and advocating for industbest practices that suppo sustainable development.
e Canada facility actively suppos carbon neutrality goals, including working withsuppliers to implement net-zero emissions programs. Its production processes fully complywith Canada’s Environmental Protection Act and the 2030 Emissions Reduction Plan. Withmeasures such as waste-to-resource initiatives and optimized low-carbon logistics, theplant maintains a carbon footprint well below indust averages. Wastewater and exhaustemissions are treated in accordance with applicable standards, with discharge levelssignicantly below legal limits.
食品安全与质量认证
绿色供应链及原材料安全
人权与商业道德
碳中和与可持续发展
Carbon Neutrality and Sustainable Development
Human Rights and Business Ethics
e Canada facility has obtained a series of internationally recognized ceications and, building on this foundation,established a robust system to ensure end-to-end compliance in food safety and quality management.All core suppliers are ceied under the Global Food Safety Initiative (GFSI), including standards such as BRC (GlobalStandard Food Safety), going well beyond basic GAP (Good Agricultural Practices) requirements to ensure globalcompliance from sourcing to production.e facility holds the highest BRC ceication rating - AA+ with a peect score - and has also passed the SMETA socialresponsibility audit, meeting international benchmarks across four dimensions:
Labor rights: Strictly prohibits child labor and ensures fair pay and reasonable working hours.Health and safety: Provides a safe work environment with comprehensive protective measures.Environmental protection:
Maintains discharges and emissions well below regulato thresholds to minimize ecological impact.Business ethics: Enforces anti-corruption protocols and ensures supply chain transparency.is ceication system has secured the facility’s ent into global supply chains, signicantly enhancing itsreputation and competitiveness while reducing legal risks and the likelihood of lost orders. By streamliningmanagement processes and minimizing the cost of repeated audits, the facility has successfully integratedinto international supply networks, reinforcing client trust and positioning itself as a strategic model for bothsustainable development and commercial growth.
China Pet Foods collaborates with ceied suppliersto ensure that the raw materials they provide are pure,uncontaminated, free from unnecessa additives,and entirely safe for pets. is approach safeguardsthe quality and safety of pet food right from the vebeginning.In addition, the facility has implemented a comprehensiveanti-corruption mechanism across its operations toensure the transparency of all commercial dealings,upholding the principles of fairness, justice, andcompliance in eve aspect of its business.
Food Safety and Quality
Green Supply Chainand Raw Material Safety
e Canadian facto strengthens employee safety through regular redrills, simulating re alarms, evacuation procedures, reghting equipmentoperation, and providing comprehensive training on hazardous materialshandling and identifying escape routes. e company integrates safetytraining into its career development framework, prioritizing employee safetyand fullling corporate responsibilities to safeguard employees' health rights.
NEW ZEALAND
2.New Zealand Facility
Rooted in the philosophy of living in harmony with nature, the New Zealand facility builds dierentiated, sustainablecompetitiveness through three core pillars: animal welfare, low-carbon production, and community engagement.e goal is to provide consumers with products that deliver both ethical value and high-quality assurance.
Animal Welfareand Grass-FedCerti?cation
e facility adheres to some of the world’s highest animal welfarestandards. All cattle and sheep are grass-fed and free-range year-roundon open pastures, in compliance with the New Zealand Farm AssuranceProgrammes (NZFAP) requirements for grass-fed livestock. Pastureresources are sustainably managed, and animals follow a natural, grain-free diet.New Zealand is also among the countries with the lowest antibioticusage globally, where therapeutic antibiotics are administered onlyunder veterina supeision. e facility meets the Gold Standard forAnimal Health and Welfare under NZFAP Plus, and complies with animalwelfare standard jointly endorsed by NZFAP Plus and British VeterinaAssociation (BVA). ese practices ensure livestock are raised in a naturalenvironment – resulting in healthier meat. (Grass-fed beef and lamb, forinstance, are known to contain higher levels of Omega-3 fatty acids.)Full traceability is enabled through the Minist for Prima Industries’ED System, which records data across the entire supply chain - frompasture and raw material transpoation to processing and expo.Product information is publicly accessible via ocial websites. All majormeat suppliers are NZFAP Plus members and are ceied under schemesincluding SMETA, FSSC, BAP, and ISO 14001. e facility regularlydiscloses details on production processes, waste treatment, andcommunity suppoing programs - fullling its commitment to “traceableto the slaughterhouse, transparent to the consumer,” and meetingglobal customers’ expectations for quality, ethics, and environmentalresponsibility.
EnvironmentalManagementand ResourceE?ciency
e New Zealand facility employs an industrial-grade closed-loop water recycling system, achieving a water-saving rate ofover 70% - setting a benchmark for water management in theglobal meat processing sector. e carbon footprint of redmeat production in the New Zealand facility is signicantlylower - 30% to 50% below the global average - thanks to theselective breeding of low-methane sheep and the carbonsequestration of pasture-based grazing. Low stockingdensities, rotational grazing practices, and strict nitratemanagement fuher suppo the facility’s environmentalpeormance, eectively reducing nitrate runo andprotecting water quality. In terms of clean energy, the newlycommissioned facility is set to be equipped with a solarphotovoltaic system to fuher cut emissions.Meanwhile, its packaging system is built on a closed-looprecycling model, eectively reducing waste and drivingprogress toward zero-waste operations.
CommunityEngagement
and FairPractices
e facility strictly complies with New Zealand’sEmployment Relations Act and Health and Safetyat Work Act, ensuring fair wages, mandato safetytraining, and provision of personal protective equipment(PPE). Employees are encouraged to paicipate inexternal skill-building programs, such as the Good Yarnsworkshops, and are suppoed in developing interestsoutside of work. Firmly rooted in the local community,the facility donates pet food products regularly toanimal welfare organizations, operates an on-site shopoering exclusive discounts for residents, and prioritizessourcing raw materials from local farmers - reinforcingits commitment to social responsibility and contributingto regional economic development.
U.S.A.
3.U.S. Facility
As a leading producer of pet treats, American Jerky takes its social responsibility seriously and remainsrmly committed to environmental compliance and sustainable development. rough a range ofinnovations and best practices, it works to reduce the environmental footprint of its operations andcontribute to the green transformation of the indust.American Jerky’s environmental and social responsibility eos go beyond compliance with U.S.environmental regulations - they reect the Company’s broader commitment as a responsible corporatecitizen. rough ongoing improvements in resource recove, energy eciency, sustainable sourcing,waste reduction, carbon neutrality, and green supply chains, the facility has signicantly reduced itsenvironmental impact. ese eos not only lay a solid foundation for future sustainable development,but also promote greener practices and ethical sourcing across the indust.
Fair Compensation andWorking Hours: American Jerkyensures that all employeesreceive fair compensation andwork reasonable hours, in fullcompliance with internationallabor standards. e Companystrictly prohibits child labor andforced labor.Protection of Employee Rights:
e Company prioritizes employeewelfare and provides a safe,suppoive working environment.A robust labor policy frameworkand comprehensive trainingsystem are in place to ensureemployees' rights are respectedand upheld.
Labor Rights
Safe Working Environment:
e Company is committed toproviding employees with a clean,safe, and well-equipped workingenvironment. Modern protectiveequipment is in place, andemployees receive regular trainingon health and safety practicesto ensure they are prepared tomanage potential risks.Health Monitoring and Protection:
In addition to routine safetymeasures, the Company conductsregular occupational health checksto safeguard employee well-beingand promote long-term health.
Health and Safety
Pollutant Emission Control: eCompany maintains strict controlover pollutant emissions anddischarges across all stages ofproduction, ensuring that alldischarge levels remain well belowregulato limits and minimizingthe impact on the surroundingecosystem.Commitment to GreenDevelopment: Guided by aphilosophy of green production,we continuously rene ourenvironmental practices toreduce the Company’s ecologicalfootprint and promote greeneroperations.
EnvironmentalProtection
Anti-Corruption Policy: We haveestablished a comprehensive anti-corruption framework to ensuretransparency in all businessdealings, upholding principles offairness, integrity, and regulatocompliance.Supply Chain Transparency: Weare committed to maintainingtransparency across oursupply chain. Regular supplierassessments are conductedto ensure alignment withsustainability standards and topromote best practices within theindust.
Business Ethics andTransparency
Water Resource Management
Ecient Water Use: American Jerky continues to improve water eciency by optimizing production schedules and adopting high-eciency,low-consumption cleaning equipment. For landscaping, the facility uses drip irrigation systems to minimize unnecessa water use.Wastewater Treatment and Water Resource Protection: e plant is equipped with advanced wastewater treatment facilities that ensure alldischarged water meets or exceeds the standards set by the U.S. Environmental Protection Agency (EPA) and applicable state regulations.ese measures help prevent contamination of suace and groundwater, in full compliance with strict environmental laws.Ongoing Wastewater Monitoring: Regular monitoring is conducted to assess wastewater quality. Discharge metrics are compared againstCalifornia and other state-level environmental standards, with operational adjustments made as needed to prevent environmental risk anduphold regulato compliance.
Waste Soing and Recycling: e facility enforces a strict wasteclassication policy. All production waste is soed and recycled bycatego to maximize resource utilization.Recyclable Packaging Materials: Packaging is designed witheciency in mind - minimizing unnecessa materials, usingenvironmentally friendly and recyclable options. American Jerkyencourages suppliers to adopt recycled content, actively reducingsingle-use packaging across the supply chain.Circular Economy in Practice: By panering with recyclingrms, American Jerky ensures that all recoverable materials areeectively recycled and reused, reducing dependence on naturalresources.
Waste Management and Resource Recovery
Green Supply Chain andRaw Material Safety & Sustainability
Carbon Emissions and Climate ActionCarbon Neutrality Goals: In response to climate change, AmericanJerky has set clear targets for carbon neutrality. e facility isconstructed using high-peormance insulation materials tominimize thermal exchange and energy loss. Rooftop solar panelsgenerate clean energy, signicantly reducing carbon emissions.e facility also conducts regular energy audits and continuouslyimproves energy eciency, aiming to lower its carbon footprintthrough ongoing conseation eos.Green Production Facility: e plant has invested in energy-ecient machine and optimized its manufacturing processes toreduce energy consumption. Paial reliance on renewable energysuppos the goal of building a low-impact, environmentallyresponsible production base.
1.Raw Material Procurement Standards
Strict Supplier Screening and Ceication: All suppliers must meet both international andnational food safety standards, with paicular attention to the specic requirements of petfood safety. We work exclusively with ceied paners to ensure that all raw materials areclean, additive-free, and safe for animal health.Sustainable Sourcing Policy: e facility gives priority to sourcing raw materials fromfarms and production sites that meet environmental standards, align with sustainabledevelopment requirements, and are ceied under the MSC (Marine Stewardship Council)sustainable sheries program.
2.Raw Material Traceability System
End-to-End Traceability: All raw materials are fully traceable through a dedicated trackingsystem that records each batch from procurement and transpo to nal use. is ensurestransparency of origin and full compliance with sourcing standards. In the event of anyquality concerns, the system allows for rapid tracing back to the source - minimizingpotential food safety risks.Ingredient Safety Control: All incoming raw materials undergo rigorous testing for multiplesafety indicators, including heavy metals and pesticide residues, to ensure both regulatocompliance and product safety.
3.Animal Welfare and Ethical Slaughter
Animal Welfare Ceication: We work exclusively with ceied slaughterhouses that meetrecognized animal welfare standards. ese facilities ensure that all animals are handledhumanely and in environmentally responsible ways, minimizing unnecessa suering andreducing stress during transpo.Animal Welfare Program: A stringent supplier auditing and ceication process is in placeto ensure that all paners adhere to best practices in animal welfare throughout theiroperations.
4.Food Safety and Quality Control System
Global Food Safety Ceication: e American Jerky facility is ceied under internationallyrecognized food safety standards such as the BRC Global Standard Food Safety, ensuringthat all products meet rigorous food safety requirements across global markets.HACCP and GMP Systems: e facility fully implements the Hazard Analysis and CriticalControl Points (HACCP) system and is ceied under Good Manufacturing Practices (GMP),guaranteeing that eve stage - from raw material sourcing to nal production - complieswith international food safety standards.
YANTAI CHINA PET FOODS 73 / 74
People First:
Building a Fullling Workplace
YANTAI CHINA PET FOODS
1.Overall Employee Prole
Employees are the foundation of enterprise growth and the driving force behind China Pet Foods’ ambition tobecome a global leader in the pet food indust. e Company has long placed a strong emphasis on safeguardingemployee rights, fostering professional growth, and promoting overall well-being. It has established a soundcompensation system and structured career development pathways, while encouraging a workplace culture ofhumanistic care. rough diverse learning platforms, cultural and recreational activities, and external training andexchange programs, the Company takes concrete steps to safeguard its employees’ rights and interests - creating asuppoive environment for them to grow and thrive alongside the business.
During the repoing period, China Pet Foods strictly adhered to the Labor Contract Law and other applicablenational laws and regulations in implementing its employee compensation policies. e Company establishedcompliant systems for social insurance and housing fund contributions and developed a wage structure based on jobroles and skill levels. It also implemented a peormance-based incentive mechanism designed to enhance employeewelfare while ensuring internal equity. With compensation as the cornerstone, the Company fosters a workingenvironment that balances eciency and fairness - encouraging motivation, stability, and individual initiative.Employees are suppoed in realizing their professional potential and personal value. Staying true to its people-oriented philosophy, China Pet Foods remains committed to aligning human capital development with enterprisegrowth, enabling employees to realize their personal value and thrive together with the Company as it continues itsrapid growth.
2.Compensation and Promotion Policies
Based on the vaing roles, functions, and development needs across depaments, China Pet Foods preparesan annual training plan tailored to its workforce. Training formats include in-house sessions, external programs,onboarding training, promotion-focused workshops, reading initiatives, and sessions led by pa-time trainers.Covering areas such as management, technical skills, professional conduct, workow, and corporate culture, theprogram is designed to foster a highly skilled and professional workforce.
3.Workplace Safety
Workplace safety is the lifeline of the Company’s development—and a shared responsibility for all. China Pet Foodsplaces workplace safety at the core of its operations, continuously enhancing employee awareness and emergencyresponse capabilities through a structured, multi-dimensional training system. In 2024, the Company focused on twokey pillars: hands-on re drills and a three-tier safety education program for new hires. Fire drills are designed toensure all employees can respond, evacuate, and act within critical timeframes - “respond in one minute, contain inthree.” At the same time, the Company strictly enforces a three-tier safety training system for all new employees—atthe company, depament, and role level—ensuring 100% of new sta are fully qualied before taking up their posts.ese eos reinforce a strong and reliable safety culture throughout the organization.
e company organized and conducted re safety drills.
4.Professional Skills Development
Talent is the Company’s most valuable asset. China Pet Foods actively fosters a culture of lifelong learning to helpemployees adapt to a fast-changing market and rising peormance expectations. rough a combination of policiesand structured programs, the Company provides platforms for continuous development and upskilling. Guided by thebelief that “lean begins with mindset, and improvement stas with me,” the Company promotes an environment ofinnovation and learning. Its regular “Sma Classroom – Lean Series” has become a key training initiative. In 2024, atotal of 12 sessions were successfully held, embedding lean thinking into daily learning and operations, and inspiringemployees to engage in improvement with creativity and enthusiasm.
CASE
Sma Classroom – Lean Series
Master-Apprentice ProgramOn-the-Job Coaching and Skills Transfer
China Pet Foods Executive MBA ProgramChina Pet Foods “Depaure Flights” Program
5.Celebrating the 26th Anniversa of China Pet Foods
(1998-2024 e 26th Anniversa of China Pet Foods
6.Employee Benets Policy
Beyond holidays, China Pet Foods also organizes a variety of activities throughout the year - such as family outings,company anniversaries, Teacher’s Day tributes, and marathon events. ese initiatives strengthen the sense ofbelonging among employees and their families, helping individuals realize their full potential in this relaxed andsuppoive environment. At the hea of it all is the Company’s people-rst philosophy, rooted in the idea of “family”.Here the Company strives to ensure that eve China Pet Foods family member nd satisfaction and meaning in whatthey do – and in return, bring more energy and pride to their daily roles.
China Pet Foods marks eve major holiday with care and celebration. From New Year’s Day and Spring Festivalto Lantern Festival, Dragon Boat Festival, and International Women’s Day, the Company organizes thoughtfulappreciation activities and distributes festive gifts - demonstrating its commitment to humanistic care and corporateculture. Festive items such as glutinous rice balls, rice dumplings, and eggs are carefully prepared to reect eachoccasion. ese gestures bring a sense of warmth and belonging, allowing employees to enjoy the spirit of theseason amid their daily work.
7.Staying True, Striving Forward:
2024 China Pet Foods Recognition Ceremony and Cultural GalaTime carries our dreams, and the years etch our achievements. As the Year of the Snake approached, China Pet Foodshosted two major annual events: the 2024 Supply Chain System Annual Review and Commendation Conference andthe “Staying True, Striving Forward” 2024 Annual Recognition Ceremony and Company Gala.Staying true to our values is the path to long-term success, and passion fuels the spirit of youth. At China Pet Foods,we move forward at full speed, meeting eve challenge with determination. In 2024, 387 outstanding individualsand 44 exceptional teams were honored on stage. United by the theme “Staying True, Striving Forward,” they turneddedication into action and passion into purpose - together writing a vibrant new chapter in the Company’s sto.
Mr. Hao Zhongli, Founder and CEO of China Pet Foods, gave the keynote speech at the event.
81 / 82Supply Chain Annual Conference
Mr. Jiang Yishan, Director and Executive Vice President of China Pet Foods, delivered the on-site address.
China Pet Foods Annual Conference
8.A Warm Journey Home: China Pet Foods in Action
9.Pet-Friendly Spaces, Warmer Workdays
To foster a warm and welcoming oce environment - and to strengthen employees’ sense of happiness, belonging,and emotional connection with animals, while highlighting the role of pets as both family and friends - China PetFoods introduced a pilot policy titled Trial Policy on Pets in the Workplace. Under this initiative, employees areallowed to bring pets to the oce, provided they do not disrupt the work environment. e Company recognizesthat pets are not only beloved companions at home, but also bring vitality, comfo and a sense of calm intothe workplace. Interacting with them during a busy day can help ease stress, spark creativity, and promotecommunication among colleagues. is thoughtful policy reects the Company’s care for its people. It aims to createa workplace lled with love, empathy, and inclusion, where eveone feels encouraged to unlock their potential and
10.Employee Representative Conference
China Pet Foods embraces the philosophy of democratic management and active employee paicipation.e Company regularly convenes employee representative conferences, conducted in line with formal procedures.ese meetings provide a structured forum to discuss key issues ranging from business strategy and operationalmanagement to employee rights and corporate culture. Representatives are encouraged to speak on behalf of thewider workforce - bringing forward their thoughts, concerns, and needs, and helping turn collective insight into ameaningful force that drives the Company forward. At the 2024 sessions, employee representatives voted to approvefour internal policies: the revised Employee Handbook, the SFA Store Visit Management System for sales sta, theEmployee Conduct and Disciplina Reference Table, and the Irregular Working Hours Policy.
During the 2024 Spring Festival, China Pet Foods placed people at the hea of its mission. As pa of its employeecare and corporate responsibility eos, the Company launched the “Homebound with China Pet Foods” publicwelfare initiative. A total of 13 large chaered buses were arranged, safely caring 450 employees back to theirhometowns. e program underscored the Company’s enduring commitment to employee well-being and itsattentiveness to individual needs - especially during China’s most cherished traditional holiday. By ensuring a smooth,safe, timely journey home, China Pet Foods enabled hundreds of sta members to reunite with their families andcelebrate the joy of togetherness.
YANTAI CHINA PET FOODS 85 / 86
Protection of
Supplier, Customer,
and Consumer Rights
YANTAI CHINA PET FOODS
1.Supplier Management
China Pet Foods upholds the principles of transparency, fair competition, integrity, and accountability in all aspectsof supplier management. rough well-developed institutional frameworks, on-site supplier audits, and dynamicoversight mechanisms, the Company embeds sustainability into its supply chain risk management practices. eseeos continue to strengthen the procurement and supplier management system - ensuring product and seicequality while safeguarding the rights and interests of customers and consumers.
1. Responsible Procurement in Practice
e Company has developed a series of internal regulations to guide responsible procurement, including the SupplierManagement Policy, Supplier Onboarding Procedure, Bidding Management Policy, Supplier Evaluation Procedure,and Supplier Audit Procedure. ese policies and procedures standardize procurement processes and reinforcecompliance in purchasing activities.
2. Robust Supplier Management
China Pet Foods has established a rigorous supplier onboarding process, setting clear standards that coverqualications review, production capacity assessment, product quality inspection, and commercial credibility. esemeasures ensure that new suppliers meet foundational requirements and demonstrate long-term growth potential.roughout the cooperation period, the Company conducts both scheduled and unscheduled evaluations of supplierpeormance. Assessment criteria include delive timeliness, product quality consistency, and responsiveness ofafter-sales seice. On-site inspections are also carried out to gain rst-hand insights into suppliers’ operationalpractices.Based on the results of these assessments, a comprehensive supplier exit mechanism has been put in place. Suppliersthat repeatedly fail to meet peormance benchmarks, pose serious quality risks, or engage in fraudulent conductare promptly removed - ensuring the integrity of the supply base. Dynamic management measures are also appliedto fuher strengthen procurement and supplier management practices and safeguard product and seice quality,ultimately protecting the interests of customers and end consumers.In addition, the Company requires all suppliers to sign a Letter of Integrity, which explicitly prohibits any form ofbribe or improper dealings with procurement sta. is reinforces fair and transparent procurement practices,suppos cost control, and enhances procurement quality.
3. Supply Chain Digitization
China Pet Foods continues to enhance its digital supply chain infrastructure by upgrading its SRM and CRM systems.ese eos aim to strengthen information management and accelerate the integration of data-driven anddigitalized operations. e goal is to build a unied information exchange platform between the Company and itssuppliers—as well as among internal supplier networks.e platform integrates key modules such as master data management, supplier management, peormanceevaluation, quality control, procurement collaboration, and contract management. By streamlining these functions,the system signicantly improves operational eciency and ensures full transparency and traceability across evestage of supplier management.
2.Customer and Consumer Rights Protection
China Pet Foods also holds regular distributor conferences, using a variety of formats to reach and engage itspaners. ese events enhance mutual understanding, deliver mutual value, unlock collaboration potential, and lay astable foundation for shared growth. In addition, the Company conducts customer satisfaction sueys from time totime to listen closely to customer feedback to make targeted improvements to collaboration details.
At China Pet Foods, the core value that stands rst is “Customer” - a principle the Company has upheld consistentlythroughout its development. With a top-down approach and coordinated execution, China Pet Foods continuesto strengthen full-process management and consumer rights protection. e Company remains committed todelivering products and seices that are high-quality, safe, and dependable - earning lasting trust and suppo fromconsumers.To foster long-term panerships, the Company has established robust communication mechanisms with customers,maintaining open and friendly exchanges. rough multiple channels, it stays attuned to evolving customer needsand concerns, while sharing timely market intelligence and emerging trends. Leveraging its strengths in resourcesand technology, the Company organizes regular exchange sessions to help customers optimize their products andseices - delivering shared value.
YANTAI CHINA PET FOODS 89 / 90
Public Relations and
Social Welfare Programs
YANTAI CHINA PET FOODS
1.Rooted in Real Economy,
Committed to Regional GrowthChina Pet Foods recognizes that its success is closely tied to the suppo of the broadersociety. Since its founding, beyond - pursuing business excellence, the Company hasactively fullled its social responsibilities—providing disaster relief, suppoing those inneed, and contributing with care and compassion. While maintaining steady businessgrowth, both the Company and its subsidiaries have remained committed to fulllingtheir social responsibilities. In 2024, China Pet Foods paid over RMB 100 million in taxes,contributing meaningfully to national revenue and local economic development. eCompany also played an active role in job creation, oering thousands of long-termpositions and hundreds of tempora jobs, thereby promoting economic vitality and socialstability in the regions where it operates.In recognition of its strong overall peormance and outstanding contribution to thelocal economy, China Pet Foods was honored as a “Leading Enterprise in EconomicDevelopment” by the Laishan District in 2024. Lawful and honest tax payment is acore reection of corporate credibility - and the strongest business card a companycan hold. Over the years, China Pet Foods has earnestly implemented national tax lawsand policies, treating tax compliance and integrity as a lifeline of its operations. Byconsistently honoring its tax obligations and upholding the principles of tax integrityand accountability, the Company continues to play an active role in suppoing regionaleconomic growth.
In 2024, the Yantai Municipal Committee of the Communist Pay of China and the Yantai Municipal People’s Government convened theConference on Accelerating the Multiplication of Advanced Manufacturing Enterprises. At the event, 83 enterprises recognized under the city’s“Multiplication Plan” were formally honored - including China Pet Foods. Since the launch of the Plan, these enterprises have increased theirshare in Yantai’s output from industrial enterprises above designated size by 5.3 percentage points. ough they account for less than 10% ofall large-scale industrial enterprises, they contribute over 60% of total output.As a Yantai-based enterprise, China Pet Foods has long pursued innovation and continuous progress. It has received multiple honors fromthe Yantai municipal government and continued to play an active role in advancing the city’s high-quality economic growth. Its developmentoutcomes have been widely recognized by government authorities.
To promote the healthy and sustainablegrowth of the pet indust, the inauguralG300 China Pet Indust Leadership Summitwas successfully held at the HangzhouInternational Expo Center. e event broughttogether leading enterprises, scholars, andbrand executives from across the globe,oering a high-level forum to examine currentindust dynamics and explore emergingtrends, contributing insights on the long-term, high-quality development of the sector.At the Summit, Mr. Hao Zhongli, Founder andChairman of China Pet Foods, was recognizedas a “2023–2024 Inuential Figure in China’sPet Indust”.
China Pet Foods actively suppos the developmentof urban spos and cultural life. As title sponsor ofthe “China Pet Foods · WANPY? Cup” 9th LaishanHalf Marathon and Chinese Zodiac Marathon – Yearof the Dragon Edition, the Company underscored itsdeep connection to local development. Organized bythe Laishan District People’s Government of Yantai,the event drew over 7,000 runners to its 21-kilometerhalf marathon and 8-kilometer mini run. Blendingathletic peormance with local cultural promotion,the race marked a milestone in Laishan District’s30th anniversa celebrations. For China Pet Foods, itwas also a successful demonstration of how “sposmarketing and localized engagement” can extendbrand reach and deepen community ties.
“China Pet Foods · WANPY? Cup”9th Laishan Half Marathon and Chinese Zodiac Marathon
In November 2024, to fully implement the guiding principles of the 20th National Congress of the Communist Payof China and the Second and ird Plena Sessions of its 20th Central Committee, and to advance the "Big Food"concept while promoting the transformation and quality-driven growth of the food indust, Shandong ProvincialCommittee of the Communist Pay of China and Shandong Provincial Government issued the Notice on CommendingOrganizations and Individuals with Outstanding Peormance in Advancing the High-Quality Development ofShandong’s Food Indust in 2023. A total of 40 organizations and 60 individuals were recognized for their exemplacontribution. Among them, Mr. Hao Zhongli, Founder and Chairman of China Pet Foods, was named an OutstandingContributor to the High-Quality Development of Shandong’s Food Indust. is honor not only acknowledgesChairman Hao’s personal achievements, but also arms China Pet Foods’ long-term commitment and contributionsto advancing the high-quality development of the pet food indust.
2.Bringing Chinese Brands to the World
2024 “Premium Pet Food, Made in Shandong” Distinguished Enterprise
e Companion Animal Food Ingredients Conference is one of the mostprominent events in China’s pet food indust, dedicated to promotinginnovation and advancement in pet food ingredients. It sees as a vitalplatform for fostering collaboration between domestic and internationalenterprises and is widely recognized as a key forum for leading industplayers to exchange ideas and showcase their achievements. China PetFoods received the highest number of votes and was honored with one ofthe Conference’s most prestigious awards - the “Six Ingredient ExcellenceAward.” is recognition highlights the Company’s indust leadershipand the broad acknowledgment of its comprehensive capabilities.
China Pet Foods Received the"Six Ingredient Excellence Award"
Since its founding in 1998, China Pet Foods has remained rmly committed to a global development strategy. Withan open and outward-looking approach, the Company continues to expand its international footprint - bringing thebrilliance of “Intelligently Made in China” to the global market. e Company owns several agship brands, includingWANPY?, ZEAL?, and TOPTREES?. Its products are expoed to 85 countries across ve continents, with self-owned brands now sold in 73 markets, marking the Company’s solid eos in advancing the international presenceof Chinese pet food brands. Looking ahead, China Pet Foods will continue to champion high-quality opening-up inthe pet indust. rough premium products and professional seice, the Company is determined to showcase thestrength of Chinese brands on the world stage.
4.Public Welfare and Animal Rescue
China Pet Foods has always stayed true to its original aspiration and remains committed to providing high-qualityfood for pets. e Company continues to move forward with the belief that “Eve life is precious and deseesrespect and care.” As a Vice President Member of the China Small Animal Protection Association, the Company haslong been dedicated to the rescue and welfare of stray animals. Eve month, China Pet Foods donates pet food tolocal animal rescue shelters to suppo their care and protection eos. Company teams also engage directly withshelter sta to understand the animals’ daily dieta needs, health conditions, and ongoing rescue plans - ensuringthat eve donation would precisely address the needs of each stray animal, improve their living conditions anddeliver warmth and hope to lives in need.
3.Driving Indust Development
and Fullling Corporate Responsibility
At the China Pet Nutrition and Health Forum jointlyorganized by Pet Fair Beijing and the China Pet NutritionGuidelines, Dr. Zhang Can of the Pet Nutrition andHealth Research Institute, China Pet Foods, was invitedto share an oveiew of the Institute’s work, includingits studies on gut microbiota in cats and dogs, reectingthe Company’s active role in advancing pet food R&Dand promoting pet health.
As the chairing member of the Pet Indust Branch ofthe China Animal Agriculture Association, China PetFoods continues to deepen its expeise in the petfood sector and paicipates in the development ofindust standards. At the 3rd Pet Indust Conference,Dr. Nie Shijian, Council Member of the Association andChief Scientist at China Pet Foods, shared insights on“Data-Driven Analysis of Pet Digestive Issues”, fuherpromoting knowledge exchange and collaborationacross the indust.
China Pet Foods is equally committed to talentdevelopment. e “WANPY? Cup” 2024 National LightIndust Vocational Skills Competition - 4th National PetIndust Skills Competition - was held in Chengdu. As thechairing unit of the Pet Indust Branch under the ChinaGift & Leisure Products Association, China Pet Foodshas seed as the title sponsor for four consecutiveyears. e Company rmly believes that excellence intalent is forged through competition, nuured throughskills-based growth, and guided by a sense of nationalpurpose. Only along this path can the indust cultivate ahighly skilled and professional workforce. is pursuit ofexcellence fuels ongoing innovation and ever-improvingseice quality - laying the foundation for a healthy,well-regulated, and high-quality future for the indust.Group photo at the closing ceremony of the “WANPY? Cup”2024 National Light Indust Vocational Skills Competitionthe 4th National Pet Indust Skills CompetitionAs a leader within indust associations, holding key positions such as president, vice president, and vice chairman,China Pet Foods not only adheres to international quality standards for the pet food indust but also plays an activerole in advancing China's pet food sector toward standardized and healthy development. e Company contributesvaluable scientic insights to indust associations and suppos the establishment and renement of domesticstandards for pet food, making its due contribution to the sustainable growth of China’s pet food indust.
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Driving Industrial Upgrading
rough Innovation
YANTAI CHINA PET FOODS
Sustained accumulation leads to breakthrough success, and our innovative achievements standas testament to our capabilities. As of April 2, 2025, China Pet Foods has been granted 301national patents, including 15 invention patents, and has been consecutively recognized as aNational High-Tech Enterprise for multiple years. Moving forward, China Pet Foods will continueto increase R&D investment, driving industrial advancement through technological innovationto deliver safer and healthier food for pets worldwide.
In 2024, the Company’s NPTC Intelligent Wet FoodProduction Base was honored with the NZCBIAExcellence Awards - 2024 Special Contribution Award, inrecognition of its outstanding engineering eciency andmeticulous innovation in construction, which set a newbenchmark in industrial construction. In August 2024,China Pet Foods, as a leading player in the indust, tookcenter stage to receive the Special Contribution Awardfrom the Prime Minister of New Zealand - demonstratingthe strength of Chinese sma manufacturing on theglobal stage.
Dr. Sabrina Tian, a Chinese-New Zealand scientist,brings fresh momentum toChina Pet Foods’ researchand development eos.
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Technological innovation is the engine of enterprise competitiveness - and the driving force behind industprogress. As a leading player in the sector, China Pet Foods draws on the expeise of its Pet Nutrition andHealth Research Institute, where it conducts foundational research in pet nutrition, explores scienticallybalanced formulations, and contributes to the development of indust standards. Sma manufacturing is alsogathering pace. With digital intelligence enabling end-to-end coordination, the Company is steadily improvingproduction eciency and product quality. With a global outlook, China Pet Foods actively engages in internationalcollaboration across academia, research, and indust - integrating cutting-edge technologies and helping build aworldwide innovation ecosystem. Innovation thrives on deep foundations—and the results speak for themselves.
Scientic - Collaboration: China Pet Foods and CAASJoin Forces to Shape the Future of the Pet Indust
YANTAI CHINA PET FOODS
In December 2024, China Pet Foods signed a strategic cooperation agreement with SAP, becomingthe rst company in China’s pet indust to hold a formal signing ceremony with the global softwareleader. Leveraging SAP’s strengths in enterprise digitalization, resource integration, and operationalmanagement, the panership will suppo China Pet Foods in upgrading its core business systems andjointly building a best-in-class information infrastructure for the pet indust, fuher suppoing itsglobal expansion.Under the agreement, the two paies will engage in deep collaboration across the Company’s corebusiness areas, advancing digital upgrades in ERP cloud platforms, supply chain planning, andhuman resources management. China Pet Foods will use this oppounity to establish a unied digitalmanagement system across the Group, meeting the needs of its diversied business development andsetting a new benchmark for digital transformation in the indust.is cooperation marks a signicant milestone in the Company’s digital journey. Looking ahead, ChinaPet Foods will continue to deepen collaboration with indust paners, expand new business frontiersthrough digitalization, and create greater value through higher-quality products and seices, usheringin a new era of digitalization for the pet food indust in China.
A New Era of Digital Transformationfor China’s Pet Indust
In an era where AI and life sciences increasingly intersect, the welfare of laborato animals is no longera vague moral question - it has become a matter of enforceable institutional frameworks. On Pet Dayin April 2025, China Pet Foods took concrete action and upheld pet welfare through both institutionaland ethical commitments - ocially unveiling the rst Laborato Animal Ethics Committee in pet foodindust.is marked a profound dialogue on life’s welfare and scientic ethics. In navigating the space betweenresearch innovation and ethical responsibility, China Pet Foods oered its answer. e launch of theCommittee is not only a forward-looking institutional initiative, but also an extension of the philosophythe Company has long upheld: “Pets are our friends and pa of our family”. As scientic explorationcontinues, China Pet Foods holds fast to a clear conviction: Technology may know no limits, but ethicsmust always have hea – for respect for life, is the only path to the future.
From Laborato Animals to the Ethics of Life:
China Pet Foods’ Answer to a Moral Imperative
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Product Safety and Quality
YANTAI CHINA PET FOODS
End-to-End Quality Management:
Safeguarding Every BiteAs a leading player in China’s pet food sector, China Pet Foods treats product quality as its lifeline. We havebuilt a full-chain quality management system that spans raw materials, production, and testing, adhering tohuman food-grade safety standards to protect the health of eve pet.
Building First-Class Factories on Chinese Soil,Creating First-Class Products for ChineseConsumers.China Pet Foods rmly believes that deliveringexceptional product quality is the rightfulresponsibility of a national brand, and thecalling of a brand that represents a greatnation.is alignment - integrating enterprisedevelopment with national strategies - is theve reason China Pet Foods has emerged asa leading representative of China’s pet foodindust on the global stage.
Strict Raw Material Controls:
Ensuring Quality from the SourceChina Pet Foods has established indust-leading standards for the inspection of fresh meat ingredients,enforcing comprehensive oversight across supplier qualications, ingredient traceability, and nutritionalmetrics. Each batch of raw materials undergoes rigorous testing for heavy metals, veterina drug residues,and microbial contamination—ensuring full compliance with national standards.Chicken is the prima ingredient in most pet food products. Notably, four publicly listed white-featherbroiler companies are based in Yantai, with the closest located just over 20 kilometers from China PetFoods. is ensures a seamless 24-hour fresh supply chain, covering eve step from poult breeding andrelease, to slaughter, pre-chilling, packaging, cold-chain logistics, facto processing, and nal pet foodproduction.
China Pet Foods builds and operates its production facilities in strictcompliance with human food-grade standards. Powered by customizedpet food production lines from Bühler (Switzerland), the Company cannow switch across product types and formulations in just 45 minutes,allowing exible manufacturing while minimizing cross-contaminationrisks between batches.Pas of the production line utilize pharmaceutical-grade 316L stainlesssteel piping, paired with advanced CIP/SIP (Clean-in-Place/Sterilize-in-Place) systems, enabling continuous 24-hour production with nohygiene blind spots. Eve step of the process is monitored in real timevia the MES (Manufacturing Execution System), with key parametersautomatically recorded and archived—creating a fully traceableproduction histo.
Intelligent Manufacturing:
Building Product Excellence
China Pet Foods holds 19 internationally recognized ceications,including ISO 9001 (Quality Management), ISO 22000 (Food SafetyManagement), and ISO 14001 (Environmental Management). eCompany has implemented a “three-tier testing” system, coveringincoming raw materials, in-process productions and nal products.To suppo this, a dedicated testing center was built with aninvestment of over RMB 15 million.e center is equipped with advanced instruments such as high-peormance liquid chromatography-mass spectromet, liquidchromatographs, atomic absorption spectrometers, amino acidanalyzers, and Kjeldahl nitrogen analyzers. Over 100 indicators aretested, ranging from nutrients, microbes, veterina drug residues, andheavy metals to vitamins, amino acids, toxins, and freshness metrics.
Driven by Global Standards,Fortifying a Quality Firewall
At China Pet Foods, the principle of "quality rst" is deeply woven intothe fabric of its corporate culture. e Company has established a qualitymanagement system that involves eve employee, breaking down qualitygoals to each position and process.Its visualized production workows foster condence in eve stage ofthe manufacturing cycle. is unwavering commitment to quality, tightlylinked to the mission of building a trusted national brand, is a core reasonwhy China Pet Foods continues to gain recognition in global markets.
Forging Brand DNAThrough a Culture of Quality
In 2025, the global business landscape continues to undergo profound shifts. Layered with growing unceainties,these changes present new challenges for corporate strategy and operations. In response, China Pet Foods willremain rmly committed to its core development strategy: building strong proprieta brands, deepening its presencein the domestic market, accelerating overseas expansion, and steadily advancing its global supply chain layout - allwhile maintaining scale in its traditional OEM business. Grounded in its core business, the Company will continue tosharpen its product, channel, brand, and operational capabilities. Guided by the philosophy that “Pets are our friendsand pa of our family,” and anchored in the values of “Customer, Quality, Innovation, and Responsibility”, ChinaPet Foods upholds its mission to “Promote the healthy, standardized, and high-quality development of China’s petindust”. With this, it continues to pursue its vision: to be the leading enterprise in global pet food indust.In 2025, China Pet Foods will continue to uphold and deepen its development strategy, leveraging its strong corebusiness as a foundation to accelerate innovation and build a truly global supply and sales network. e Companywill advance its international operations in a steady and purposeful manner, expanding into overseas markets withregion-specic product customization and optimization to boost both brand impact and market share—bringinghigh-quality pet food to a broader global audience. Globalization of self-owned brands remains a critical pathway tohigh-quality growth. China Pet Foods will continue to broaden its global footprint by expanding proprieta brandsales channels abroad and driving deeper breakthroughs in its international strategy.Meanwhile, China Pet Foods continues to deepen its presence in the domestic market. By closely tracking consumerpreferences and market shifts, the Company remains committed to building proprieta brands. It continues to investin R&D and product innovation, strengthen quality, and diversify its oerings—positioning itself to meet the risingand increasingly varied demands of pet owners in China. rough these eos, the Company aims to reinforce andstrengthen its leadership in the domestic pet food sector and fully advance its strategy centered around self-ownedbrands.2025 marks a pivotal year for China Pet Foods. e Company will fuher rene its strategic layout, sharpen corecompetitiveness, expand market share, and elevate brand inuence, paving the way for an even more remarkablechapter in the year to come.
Looking Ahead
Climate responsePollutant discharge
Waste disposal
Ecosystem and biodiversity protectionEnvironmental compliance management
Energy utilization
Water resources utilizationCircular economyRural revitalizationSocial contributionsInnovation
Ethics of science and technologySupply chain securityEqual treatment of SMEsProduct and seice safety and qualityData security and customer privacy
EmployeesDue diligenceStakeholder engagement Anti-commercial bribe and anti-corruption
Fair competition
Environment
Community
Sustainability-
relatedgovernance
Green Development,Shared Prosperity
Public Relationsand Social Welfare Programs
Product Safety and Quality
Self-Regulato Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Repo (For Trial Implementation)
Indices of Guidelines Topics
Sound Governanceand Steady Operations
People First
DimensionNo.TopicCorresponding Chapter
Driving Industrial Upgrading
rough Innovation
Product Safety and QualityProtection of Supplier, Customer,
and Consumer Rights