CHINA STARCH announced that the Group expects to report total revenue of approximately RMB 10.058 billion for the year ending December 31, 2025, compared to total revenue of RMB 11.415 billion in 2024. Relative to the pre-tax profit of RMB 838 million for the year ended December 31, 2024, the Group anticipates a significant decrease of approximately 64% in pre-tax profit for the current year. The expected declines in both revenue and pre-tax profit for this year are primarily attributable to the following factors.

(i) The performance in 2024 was exceptionally strong, largely driven by a decrease in the cost of corn kernels. In contrast, corn kernel prices have risen for three consecutive quarters during the current year. This cost inflation has exerted adverse pressure on the Group's profit margins.

(ii) The Chinese corn starch and lysine industries continue to experience a supply surplus, placing persistent downward pressure on market prices. Notably, lysine market prices fell sharply in the second half of the year, negatively impacting the Group's profitability.

(iii) During 2025, several countries initiated anti-dumping investigations into lysine produced in China. As overseas buyers reduced orders, some products originally intended for export were redirected to the domestic market, further intensifying the supply glut and creating additional downward pressure on domestic lysine prices.

(iv) The starch capacity expansion project at the Linqing production base affected operational capacity this year, as one starch production line was dismantled to facilitate construction related to the expansion. Details of the starch production project were disclosed in the Company's announcement dated February 20, 2025.

(v) The anticipated traditional peak season for starch sugar, typically occurring during national holidays and summer months, did not materialize as expected during the current year.