Joyvio Food Co., Ltd.
2025 Annual Board of Directors' Report
Report Period, the Board of Directors has strictly followed the "Company Law," "Securities Law," "Shenzhen Stock Exchange GEM Stock Listing Rules," and the "Articles of Association," "Board of Directors Meeting Rules," and other laws, regulations, normative documents, and company systems. The Board has diligently performed its duties, diligently carried out various tasks, continuously standardized corporate governance, and promoted the sustained and stable development of the company. The work of the Board of Directors for 2025 is hereby reported as follows:
I. Company's Overall Operating Situation and Key Board Work in 2025
During the reporting period, the company achieved operating revenue of RMB 1.657 billion, a year-on-year decrease of 51.51%; and a net profit attributable to shareholders of the listed company of RMB -0.427 billion, a year-on-year increase of 53.78%.
In 2025, the company's Board of Directors focused on the following aspects to promote the improvement of the company's governance and operational management level:
- Completion of the Divestment of Loss-Making Assets Project, Achieving Positive Net Assets
During the reporting period, the company completed the sale of 100% equity in Beijing Joyvio Zhencheng Technology Co., Ltd. (hereinafter referred to as "Beijing Zhencheng").
(1) Divesting Loss-Making Assets to Improve Operating Conditions
Beijing Zhencheng's operating conditions have been poor in recent years, significantly dragging down the company's overall operational development. Divesting assets that have been continuously loss-making from the company has reduced the company's burden and pressure, promoted the company's long-term healthy development, and created space for the company's operational improvement.
(2) Optimizing Company Asset Quality and Enhancing Net Asset Level
After divesting the loss-making assets, Beijing Zhencheng is no longer included in the company's consolidated financial statements. The company's asset-liability structure has been significantly improved, asset quality has been optimized, and the net asset level has turned from negative to positive, creating objective conditions for resolving the company's delisting risk.
(3) Safeguarding the Interests of the Company and All Shareholders, Enhancing Sustainable Development Capability
By divesting loss-making assets, the company's debt ratio has decreased, asset quality has improved, and return on capital has increased, enhancing the company's sustainable development capability, promoting the company's stable, healthy, and high-quality development, and safeguarding the interests of the company and all shareholders.
- Continuously Improving Corporate Governance System and Strengthening Compliance Construction
Joyvio Food
(1) Further Improving the Company's System and Enhancing Corporate Governance Level
In accordance with the latest amendments to the "Company Law," "Guidelines for Listed Company Articles of Association," "Shenzhen Stock Exchange GEM Stock Listing Rules," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidance No. 2 - Normative Operation of GEM Listed Companies," and other laws, regulations, and normative documents, to fully implement the latest legal and regulatory requirements, the company has revised relevant clauses in its "Articles of Association" based on its actual situation. After the revision of the "Articles of Association," the company will no longer have a Supervisory Board. The Audit Committee of the Board of Directors will undertake and exercise the relevant powers of the Supervisory Board as stipulated in the "Company Law of the People's Republic of China." The Board of Directors will include one employee representative director. Simultaneously, 26 corporate governance system documents have been revised, and 7 new governance system documents have been formulated. Through the aforementioned work, the Board of Directors has ensured that the company's governance system continuously adapts to changes in the internal and external environment, promoted the dynamic improvement and systematic upgrade of the governance system, and closely followed and fully implemented the policy guidance from regulatory authorities.