In the succession planning plan of the directors and heads of various units of the Company, in addition to the excellent work ability, professional skills and knowledge, the successor also focuses on the business philosophy and personality traits of the Company – “Professionalism, Integrity and Innovation”.

In the fourth re-election of directors of the Company in 2023, professional manager Xiao Kaifeng took over as director of the family Zhang Ruiqing, reducing the number of directors with second-degree relatives of the company to two, and at the same time, the three independent directors have already completed two terms, so they began to carry out a gradual replacement and rotation plan, and Shi Kunhe, director of the China Cereal Food Industry Technology Research Institute, who is familiar with the development of the baking industry, took over the original independent director Wu Chaofu to be more in line with the spirit of corporate governance. In addition, it is planned that in the fifth director re-election in 2026, another independent director will be replaced to comply with laws and regulations

After the reorganization of the Group’s functional organization in 2019, after nearly six years of operation, the Group’s three functional sectors, namely the Technology Research Center, the Marketing Center and the Management Center, have been on the right track and operating smoothly. In addition, each subsidiary includes: Wuxi Sanneng, Taiwan Sanneng, Japan Sanneng and Indonesia Sanneng, as well as the grandchildren: Schuyler, Xinneng, and Guangzhou Sanneng, all of which have formulated rotation and training plans for directors and executives at the associate level and above, including directors and senior personnel at the associate level and above of the existing group and subsidiaries, and have been proposed by the remuneration committee and approved by the board of directors to carry out the rotation of subsidiaries general managers, so as to cultivate the company’s talents and improve decision-making capabilities, and look forward to continuing to meet the company’s growth needs. From this, the group’s core decision-making succession team is cultivated and selected.

The rotation and training plan for directors and management directors planned by the Company includes two parts: professional knowledge and management ability, and the professional knowledge training courses include six major areas, including technology research and development, manufacturing, marketing and sales, financial accounting, human resources, and internal control system. Management capabilities include leadership, strategic planning, and risk management. The training model is carried out through the formulation of an annual education and training plan, which is designed by internal lecturer training, external EMBA courses and actual work rotation and overseas dispatch, etc., and the whole course training cycle is a cycle of 3 years, and the results are analyzed, reviewed and optimized every year.

The implementation results in 2025 include that since 2024, the director of the management center has been represented by Zhang Xinyi, general manager of Taiwan Sanneng, and the succession plan for generational change has been completed after one year of training; Lin Yongchang, manager of the Group’s Technology Research Center, has been promoted to the Group’s technical research associate since January 2025; For subsidiaries, from 2025, Wei Zhaohong, sales manager of Taiwan Sanneng, will be promoted to associate manager; The vice president of Wuxi Sanneng Technology Research is concurrently served by Zhang Zhihao, the group’s marketing director, and will be transferred to a part-time management assistant from January 2026 to conduct training outside the marketing sector as a future accumulation of all-round manager professional capabilities. At the same time, in order to further cultivate successor talents in 2026, Zang Liulan, vice president of Wuxi Sanneng management, will take over.

At present, the Company’s senior management rotation and training program is still ongoing, and the training positions include the heads of other centers of the Group and the management cadres above the manager level of the subsidiaries, and it is expected that the trainees will continue to improve the professional knowledge and management ability required for the planned arrangement of new positions within the expected time, and successfully complete the succession tasks through the rigorous and thorough training plan and complete the complete professional ability training.