New Risk • May 05
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (24% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.1% average weekly change). Reported Earnings • Apr 17
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: CN¥0.57 (down from CN¥0.84 in FY 2024). Revenue: CN¥3.24b (down 3.7% from FY 2024). Net income: CN¥236.1m (down 32% from FY 2024). Profit margin: 7.3% (down from 10% in FY 2024). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 8.3%. Revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Food industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 2% per year. Announcement • Apr 17
Shanghai Ziyan Foods Co., Ltd., Annual General Meeting, May 14, 2026 Shanghai Ziyan Foods Co., Ltd., Annual General Meeting, May 14, 2026, at 13:30 China Standard Time. Location: No. 26, Chunzhong Road, Minhang District, Shanghai China 
