New Risk • Jun 07
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 17% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (17% operating cash flow to total debt). Earnings have declined by 5.2% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (201% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.3% net profit margin). Declared Dividend • May 27
Dividend of CN¥0.10 announced Dividend of CN¥0.10 is the same as last year. Ex-date: 1st June 2026 Payment date: 1st June 2026 Dividend yield will be 1.8%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (61% earnings payout ratio) and cash flows (80% cash payout ratio). The dividend has increased by an average of 2.3% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 32% to shift the payout ratio to a potentially unsustainable range, which is more than the 24% EPS decline seen over the last 5 years. Announcement • Apr 29
Jinhe Biotechnology CO., LTD., Annual General Meeting, May 21, 2026 Jinhe Biotechnology CO., LTD., Annual General Meeting, May 21, 2026, at 14:30 China Standard Time. Location: No. 71, Xinping Road, Togtoh County, Inner Mongolia China