Zhongnongfa Seed Group details shareholder returns, operational plans

Zhongnongfa Seed Industry Group has announced an "Action Plan for Improving Quality and Efficiency, Enhancing Returns" to boost high-quality development and investor value, particularly for small and medium shareholders. The company aims to strengthen its main business, enhance core competitiveness, and focus on seed industry innovation and market expansion. Notably, a resolution was passed to use capital reserves to offset accumulated losses, enabling future cash dividends and addressing a past inability to distribute profits since 2017. This decision was made at the third extraordinary general meeting of 2025 on December 9, 2025.

Additionally, the company’s Seventh Board of Directors held its fifty-sixth meeting on December 26, 2025, approving the aforementioned action plan, as well as a "2025 Decision Item List" and the establishment of a trade union office at the company's headquarters. All resolutions passed with unanimous consent.

Separately, Zhongnongfa Seed Industry Group is providing a RMB 33 million guarantee for its holding subsidiary, Shandong Zhongnong Tiantai Seed Industry Co., Ltd., to secure a working capital loan. This guarantee represents 1.73% of the company's net assets and is secured by a 44.34% equity pledge from Shandong Tiantai Seed Industry Co., Ltd., a minority shareholder. The board views this as essential for maintaining the subsidiary's financial integrity and operational continuity.