Shennong Group announced that its wholly-owned subsidiary Yunnan Shennong Breeding Co., Ltd. plans to reduce its registered capital by 9 million yuan, bringing the registered capital down from 10 million yuan to 1 million yuan. On December 18, 2024, the company's fourth Board of Directors held its twenty-sixth meeting and approved the proposal regarding the reduction of registered capital for the wholly-owned subsidiary. This capital reduction does not involve related party transactions and does not constitute a major asset restructuring. Before the capital reduction, the registered capital of the breeding company was 10 million yuan, and the company's ownership ratio was 100%; after the reduction, the registered capital is reduced to 1 million yuan, and the company’s ownership ratio remains 100%. This capital reduction will not affect the normal operation of the company’s wholly-owned subsidiary’s business, nor will it negatively impact the company’s financial status and operating results.