Stock Code: 002423 Stock Abbreviation: COFCO Capital Announcement No.: 2026-013 COFCO Capital Holdings Co., Ltd. Announcement on Change of Accounting Estimates The Company and all members of the Board of Directors guarantee the content of this information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions. Special Reminder:
- This change in accounting estimates will reduce COFCO Capital Holdings Co., Ltd. (hereinafter referred to as the "Company")'s pre-tax profit for 2025 by RMB 3,467.12 million.
- In 2025, apart from the change in actuarial assumptions stated in this announcement, the Company has no other significant changes in accounting estimates. This proposal does not require submission to the Company's shareholders' meeting for deliberation. The Company's Sixth Board of Directors' Seventh Meeting, held on April 23, 2026, deliberated and approved the "Proposal on Change of Accounting Estimates." The relevant matters are hereby announced as follows: I. Overview of the Change in Accounting Estimates (I) Reason for the Change in Accounting Estimates In accordance with the "Chinese Accounting Standards for Business Enterprises" and the relevant regulations of the China Banking and Insurance Regulatory Commission, and based on actuarial assumption information available as of December 31, 2025, COFCO Capital Holdings Co., Ltd.'s (hereinafter referred to as "Zhongying Life") intends to change its actuarial assumptions in its accounting estimates. (II) Main Content of the Change in Accounting Estimates Zhongying Life determines actuarial assumptions, including economic assumptions, critical illness incidence rates, mortality rates, long-term accident incidence rates, short-term insurance claim rates, surrender rates, and special cash flows, based on the information available as of December 31, 2025, to measure insurance contract liabilities at the balance sheet date. II. Impact of the Change in Accounting Estimates on the Company In 2025, the change in economic assumptions by Zhongying Life will reduce pre-tax profit by RMB 4.2649 million, the change in critical illness incidence rate assumptions will reduce pre-tax profit by RMB 9.2167 million, the change in mortality rate assumptions will increase pre-tax profit by RMB 8.5918 million, the change in long-term accident incidence rate assumptions will reduce pre-tax profit by RMB 0.0615 million, the change in short-term insurance claim rate assumptions will reduce pre-tax profit by RMB 2.6871 million, the change in surrender rate assumptions will increase pre-tax profit by RMB 2.8456 million, and the change in special cash flow assumptions will reduce pre-tax profit by RMB 29.8784 million. The sum of these accounting estimate changes will reduce the Company's pre-tax profit by RMB 3,467.12 million. The Company will apply the prospective method to account for this change in accounting estimates. 1 III. Audit Committee's Review Opinion The Company's Board of Directors' Audit Committee believes that the change in accounting estimates is a reasonable adjustment made in accordance with the "Chinese Accounting Standards for Business Enterprises" and the relevant regulations of the China Banking and Insurance Regulatory Commission, based on relevant assumptions. It complies with the requirements of relevant laws and regulations and the actual situation of the Company's controlling subsidiary, Zhongying Life Insurance Co., Ltd. The decision-making process for this change in accounting estimates complies with the provisions of the "Company Law," "Securities Law," and the "Listing Rules of the Shenzhen Stock Exchange," and other relevant laws, regulations, and the "Articles of Association." There is no situation that harms the interests of the Company and all shareholders, especially small shareholders. The Audit Committee agrees with this change in accounting estimates and agrees to submit it to the Company's Board of Directors for deliberation. IV. Board of Directors' Opinion The Company's Board of Directors believes that the change in actuarial assumptions in accounting estimates by the Company's controlling subsidiary, Zhongying Life, based on the principle of prudence, complies with the "Chinese Accounting Standards for Business Enterprises" and the relevant regulations of the China Banking and Insurance Regulatory Commission. The decision-making process also complies with relevant laws, regulations, and the "Articles of Association." This change in accounting estimates can more objectively reflect the Company's actual operating conditions and does not harm the interests of the Company and its shareholders. V. Documents for Reference
- Resolution of the Seventh Meeting of the Sixth Board of Directors of the Company;
- Resolution of the Sixth Meeting of the Sixth Board of Directors' Audit Committee of the Company. Hereby announced. 2 COFCO Capital Holdings Co., Ltd. Board of Directors 2026 April 24