Announcement on Reply to the Inquiry Letter Regarding the 2025 Annual Report from Shenzhen Stock Exchange

Jiangsu Huifeng Bio-Agriculture Co., Ltd.

Announcement on Reply to the Inquiry Letter Regarding the 2025 Annual Report from Shenzhen Stock Exchange

The Company and all members of its Board of Directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false or misleading statements or material omissions.

On May 29, 2026, Jiangsu Huifeng Bio-Agriculture Co., Ltd. (hereinafter referred to as the "Company," "this Company," or "Huifeng Shares") received the "Inquiry Letter Regarding the 2025 Annual Report of Jiangsu Huifeng Bio-Agriculture Co., Ltd." (Company Department Annual Report Inquiry Letter [2026] No. 329, hereinafter referred to as the "Annual Report Inquiry Letter") issued by the Listed Company Supervision Department II of the Shenzhen Stock Exchange. As required by the Shenzhen Stock Exchange, the Company's Board of Directors has conducted an investigation and hereby replies to the matters involved in the "Annual Report Inquiry Letter" as follows:

In the reply to the questions in the "Annual Report Inquiry Letter," if the sum of the sub-items does not match the total due to rounding differences, it is due to rounding.

1. The inquiry feedback shows that the gross profit margins of your Company's pesticide formulation business in the four quarters of 2025 were 31.43%, 15.21%, 18.95%, and 13.98%, respectively, and the gross profit margins of the fertilizer business in the four quarters of 2025 were 11.06%, 16.95%, 5.32%, and 12.16%, respectively. Your Company stated that the gross profit margin of the pesticide formulation business in the first quarter was high, mainly due to the high proportion of sales of high-gross-profit Thiobencarb series products (gross profit margin of 31.43%); the gross profit margin of the fertilizer business in the third quarter was low, mainly due to the increase in costs in the third quarter caused by factors such as the implementation of ERP system upgrades, resulting in low gross profit; and with the growth of operating income, the gross profit margin of the pesticide business declined significantly, mainly due to the increasing proportion of revenue from the "e-commerce channel" with lower gross profit margins. In addition, most of the top ten customers in the pesticide formulation and fertilizer businesses have low paid-in capital and low social security participation. Please ask your Company to:

(1) Provide a quarterly breakdown of revenue, cost, gross profit margin, and the proportion of revenue from the Thiobencarb series products in the pesticide formulation business revenue for each quarter. If there are significant fluctuations in the quarterly gross profit margin, please explain the reasons and the reasons for the high proportion of sales of the Thiobencarb series products in the first quarter.

[Company Reply]:

I. Revenue, Cost, Gross Profit Margin, and Proportion of Revenue from Thiobencarb Series Products in Pesticide Formulation Business for the First to Fourth Quarters of 2025:

II. Reasons for the High Proportion of Sales of Thiobencarb Series Products in the First Quarter of 2025