Royal Group to boost net profit with updated accounting estimates

Royal Group announced changes to its accounting estimates for fixed assets and productive biological assets (water buffalo), effective September 1, 2025. This move, approved by the board's audit committee and board of directors, is expected to reduce depreciation expenses by approximately RMB 1,175.05 million. This will increase net profit attributable to shareholders by RMB 1,052.74 million and net assets by RMB 1,052.74 million for the period of September to December 2025. These changes, made under the prudence principle and industry practice, aim to better reflect the actual useful life of assets and will be applied prospectively.

The company will hold its third extraordinary general meeting of 2025 on October 16, 2025, to discuss and vote on several key proposals. These include amendments to the company's articles of association and various governance policies. Critically, these proposals include the removal of the supervisory committee, with some of its functions transferring to the board’s audit committee, aligning with the "new company law."

Additionally, shareholders will vote on the reappointment of Shenzhen Jiuan Certified Public Accountants (Special General Partnership) as the company's auditor for 2025, for a term of one year, with an audit fee of RMB 190 million.