NYSE: PLAG

We face various legal and
operational risks and uncertainties related to being based in and having significant operations in mainland China. The PRC government
has significant authority to exert influence on the ability of a China-based company, such as us, to conduct its business, accept foreign
investments or list on U.S. or other foreign exchanges. For example, we face risks associated with regulatory approvals of offshore offerings,
oversight on cybersecurity and data privacy. Such risks could result in a material change in our operations and/or the value of the common
stock or could significantly limit or completely hinder our ability to offer common stock and/or other securities to investors and cause
the value of such securities to significantly decline or be worthless. These regulatory risks and uncertainties could become applicable
to our Hong Kong subsidiaries if regulatory authorities in Hong Kong adopt similar rules and/or regulatory actions.

2

Because our operations are
primarily located in the PRC and Canada through our subsidiaries, we are subject to certain legal and operational risks associated with
our operations in China, including changes in the legal, political and economic policies of the Chinese government, the relations between
China and the United States, or Chinese or United States regulations may materially and adversely affect our business, financial condition
and results of operations. PRC laws and regulations governing our current business operations are sometimes vague and uncertain, and therefore,
these risks may result in a material change in our operations and the value of our common stock, or could significantly limit or completely
hinder our ability to offer or continue to offer our securities to investors and cause the value of such securities to significantly decline
or be worthless. Recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations
in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over
China-based companies listed overseas using a variable interest entity structure, adopting new measures to extend the scope of cybersecurity
reviews, and expanding the efforts in anti-monopoly enforcement. We do not believe that our subsidiaries are directly subject to these
regulatory actions or statements, as we have not implemented any monopolistic behavior and our business does not involve the collection
of user data or implicate cybersecurity. As of the date of this annual report, no relevant laws or regulations in the PRC explicitly require
us to seek approval from the China Securities Regulatory Commission (the “CSRC”), Cyberspace Administration of China (the
“CAC”) or any other PRC governmental authorities, nor has our Nevada holding company or any of our subsidiaries received any
inquiry, notice, warning or sanctions regarding our listing on NYSE America from the CSRC or any other PRC governmental authorities. However,
since these statements and regulatory actions by the PRC government are newly published and official guidance and related implementation
rules have not been issued, it is highly uncertain how soon legislative or administrative regulation making bodies will respond and what
existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated, if any, and the potential
impact such modified or new laws and regulations will have on our daily business operation, the ability to accept foreign investments
and list on an U.S. or other foreign exchange. The Standing Committee of the National People’s Congress, or the SCNPC, or other
PRC regulatory authorities may in the future promulgate laws, regulations or implementing rules that requires our company or any of our
subsidiaries to obtain regulatory approval from Chinese authorities before offering in the U.S. In other words, although the Company is
currently not required to obtain permission from any of the PRC central or local government to obtain such permission and has not received
any denial to list on the U.S. exchange, our operations could be adversely affected, directly or indirectly; our ability to offer, or
continue to offer, securities to investors would be potentially hindered and the value of our securities might significantly decline or
be worthless, by existing or future laws and regulations relating to its business or industry or by intervene or interruption by PRC governmental
authorities, if we or our subsidiaries (i) do not receive or maintain such permissions or approvals, (ii) inadvertently conclude that
such permissions or approvals are not required, (iii) applicable laws, regulations, or interpretations change and we are required to obtain
such permissions or approvals in the future, or (iv) any intervention or interruption by PRC governmental with little advance notice.

As of the date of this annual
report, the two Hong Kong subsidiaries of Planet Green do not have any material operation in Hong Kong nor have they ever collected, stored,
or managed any personal information in Hong Kong. Therefore, we have concluded that currently it is not expected that laws and regulations
in Mainland China on data security, data protection, cybersecurity or anti-monopoly to be applied to the Hong Kong subsidiaries or that
the oversight of the Cyberspace Administration of China will be extended to its operations outside of Mainland China.

In order to operate our business,
in addition to the required regular business licenses, Jingshan Sanhe is required to obtain Permit for Hazardous Chemical Products. As
of the date of this annual report, our subsidiaries have received from PRC authorities all requisite licenses, permissions, and approvals
needed to engage in the businesses currently conducted in the PRC, and no permission or approval has been denied. However, we cannot
assure you that any of these entities will be able to receive clearance of such compliance requirements in a timely manner, or at all
in the future. Any failure of these entities to fully comply with such compliance requirements may cause our PRC subsidiaries or the PRC
operating entities to be unable to begin their new businesses or operations in the PRC, subject them to fines, relevant new businesses
or operations suspension for rectification, or other sanctions.

3

As advised by our PRC counsel,
Hubei Kaicheng Law Offices, as of the date of this annual report, our subsidiaries, WFOEs, (i) are not required to obtain additional
permissions or approvals to operate their current business, (ii) are not required to obtain permission from the CSRC, the CAC, or
any other Chinese authorities to issue our securities to foreign investors based on PRC laws and regulations currently in effect, and
(iii) have not received or were denied such permission by any Chinese authorities. However, we cannot assure you that the PRC regulatory
agencies, including the CAC or the CSRC, would take the same view as we do, and there is no assurance that our subsidiaries are always
able to successfully update or renew the licenses or permits required for the relevant business in a timely manner or that these licenses
or permits are sufficient to conduct all of their present or future business. If the WFOEs or any of its subsidiaries (i) does not
receive or maintain required permissions or approvals, (ii) inadvertently concludes that such permissions or approvals are not required,
or (iii) applicable laws, regulations, or interpretations change and our subsidiaries are required to obtain such permissions or
approvals in the future, it could be subject to fines, legal sanctions, or an order to suspend their relevant services, which may materially
and adversely affect our financial condition and results of operations and cause our securities to significantly decline in value or become
worthless.

In light of the recent statements
and regulatory actions by the PRC government, such as those related to data security, and anti-monopoly concerns, Planet Green may be
subject to the risks of uncertainty of any future actions of the PRC government in this regard. Planet Green may also be subject to penalties
and sanctions imposed by the PRC regulatory agencies, including the CSRC, if it fails to comply with such rules and regulations, which
could adversely affect the ability of Planet Green to continue to be listed for trading on NYSE American or another foreign exchange,
which may cause the value of Planet Green’s securities to significantly decline or become worthless. The Holding Foreign Companies
Accountable Act (the “HFCA Act”) and related regulations call for additional and more stringent criteria to be applied to
emerging market companies upon assessing the qualification of their auditors and could add uncertainties to Planet Green’s offering
that trading in Planet Green’s securities may be prohibited under the HFCA Act. Planet Green’s auditor, YCM CPA INC., is headquartered
in California and has been inspected by the Public Company Accounting Oversight Board (United States) (the “PCAOB”) on a regular
basis. Our auditor is not included in the list of PCAOB Identified Firms of having been unable to be inspected or investigated completely
by the PCAOB in the PCAOB Determination Report issued in December 2021. On June 22, 2021, the U.S. Senate passed the Accelerating Holding
Foreign Companies Accountable Act, which, if enacted, would reduce the number of consecutive non-inspection years required for triggering
the prohibitions under the HFCA Act from three years to two. On December 29, 2022, the President signed the Consolidated Appropriations
Act, 2023, which, among other things, amended the HFCAA to reduce the number of consecutive years an issuer can be identified as a Commission-Identified
Issuer before the Commission must impose an initial trading prohibition on the issuer’s securities from three years to two years.
Therefore, once an issuer is identified as a Commission-Identified Issuer for two consecutive years, the Commission is required under
the HCFAA to prohibit the trading of the issuer’s securities on a national securities exchange and in the over-the-counter market.
Although we believe that the HFCA Act and the related regulations do not currently affect us, we cannot assure you that there will not
be any further implementations and interpretations of the Holding Foreign Companies Accountable Act or the related regulations, which
might pose regulatory risks to and impose restrictions on us because of our operations in mainland China.

Consumer Products Business

We operate a tea products
business focused on the production, processing, and sale of dark tea, primarily in the form of compressed brick tea, commonly referred
to as Qingzhuan tea, a category of post-fermented tea within the broader dark tea segment. Our business integrates raw material sourcing,
fermentation, product refinement, and distribution, allowing us to maintain quality control across key stages of production while responding
to evolving market demand.

Our operations begin with
the procurement of high-quality fresh green tea leaves from selected suppliers. These raw materials undergo a series of processing steps,
including withering, rolling, controlled microbial fermentation, and drying. The fermentation stage is critical, as it involves carefully
managed microbial activity that develops the tea’s distinctive flavor profile, aroma, and color, as well as its characteristic aging
potential. Through this process, the tea acquires the attributes commonly associated with traditional dark tea products.

Following fermentation, the
tea is refined and compressed into standardized shapes, primarily brick form, to facilitate storage, transportation, and long-term aging.
Compressed products such as Qingzhuan tea are valued for their durability, extended shelf life, and ability to improve in taste and complexity
over time under appropriate storage conditions. Leveraging our expertise in processing and fermentation, we focus on preserving these
traditional qualities while enhancing product consistency and usability.

Our flagship product is brick
dark tea. To better align with modern consumption preferences, we apply proprietary physical processing techniques to reshape and refine
traditional compressed tea bricks. Through controlled cutting, portioning, and re-compression, we produce tea products that are easier
to handle and brew, reducing the need for specialized tools while maintaining the integrity, flavor, and aging characteristics of the
original tea material. These innovations are designed to enhance convenience without compromising authenticity.

4

Building on this foundation,
we have expanded our product portfolio to include mini brick dark tea and loose-leaf dark tea in various forms. Mini brick products provide
pre-portioned servings suitable for individual consumption and on-the-go use, while loose-leaf offerings cater to consumers who prefer
more traditional or flexible brewing methods. We also offer products in a range of shapes, sizes, and packaging formats to address diverse
consumption scenarios, including retail, gifting, and bulk purchases.

We sell our tea products
through a combination of direct sales and third-party distribution channels. In addition, we have recently expanded our sales and marketing
efforts by engaging sales agents to promote our products and enhance market penetration. These agents support customer acquisition, order
generation, and geographic expansion, particularly in regions where we do not maintain a direct sales presence. We believe this sales
agent model enables us to scale our distribution network efficiently while maintaining flexibility in managing selling expenses.

Our products are marketed
to distributors and consumers who value traditional Chinese dark tea for its cultural significance, distinctive characteristics, and perceived
health benefits. Through continuous product innovation, refinement of processing techniques, and expansion of our sales network, we aim
to bridge traditional tea culture with modern lifestyle needs and position ourselves to serve both domestic and international markets.

Competition

The tea products industry
in China is highly competitive and fragmented, particularly within the dark tea segment, which includes Qingzhuan tea, Pu-erh tea, Liubao
tea, and other post-fermented tea products. The broader Chinese tea market is characterized by a large number of regional producers, traditional
tea factories, agricultural cooperatives, local processing workshops, branded consumer tea companies, distributors, and e-commerce-oriented
sellers, with no single participant holding a dominant nationwide market share.

Within the dark tea category,
the Company competes with well-established producers and brands located in major tea-producing regions, including Hubei, Hunan, Guangxi,
and Yunnan, many of which have long operating histories, recognized geographic origins, and strong brand awareness among tea consumers.
Certain larger competitors benefit from greater scale in raw material procurement, vertically integrated production facilities, broader
distribution networks, and stronger financial and marketing resources.

At the same time, the Company
also faces substantial competition from numerous smaller local tea processors, specialty tea merchants, and family-operated workshops
that compete on regional reputation, traditional craftsmanship, flexible pricing, and niche customer relationships. Because tea production
in China remains highly fragmented at both the raw material sourcing and finished product distribution levels, barriers to entry for smaller
market participants can be relatively low in certain local markets.

The Company primarily competes
on the basis of product quality, fermentation and compression expertise, consistency of flavor and aging characteristics, convenience-oriented
product design, brand reputation, pricing, packaging, and distribution reach. In particular, the Company believes its ability to modernize
traditional brick dark tea through proprietary reshaping, portioning, and re-compression techniques differentiates its products by improving
ease of use while preserving the authenticity and cultural attributes valued by consumers.

Competition is also influenced
by access to high-quality fresh tea leaves, quality control throughout fermentation and storage, innovation in product form and packaging,
effectiveness of sales channels, and the ability to respond to evolving consumer preferences, including demand for smaller portions, gifting
formats, and products suited for modern lifestyles. The Company’s use of direct sales, third-party distributors, and commissioned
sales agents further intensifies competition by placing it alongside both established branded tea enterprises and smaller regionally focused
sellers.

Chemical Business

Jingshan Sanhe has two production
lines situated within an 11,000 square-meter facility and owns capacities to complete manufacturing, labeling, and packaging. Jingshan
Sanhe researches, manufactures and distributes methanol fuel additives, alcohol based fuel, and diesel fuel in China. Methanol fuel additives
are designed to enhance the combustion performance, stability, and safety of methanol-based fuels. These additives improve fuel efficiency,
optimize energy output, and reduce engine wear, thereby increasing overall operational reliability. Alcohol based fuel is primarily used
in catering stoves, industrial boilers, heating equipment, and other applications as a clean, cost-effective alternative energy source.
It offers environmental benefits compared to traditional fossil fuels and is widely adopted in commercial and light industrial settings.
Diesel fuel is extensively used in diesel-powered vehicles, construction machinery, generator sets, and various industrial operations.
It serves as a reliable source of power generation and heating in transportation, infrastructure development, and manufacturing sectors.

The renewable energy industry
is highly competitive, with numerous companies operating across the sector. The competitive landscape is significantly influenced by evolving
consumer preferences, regulatory developments, prevailing industry trends, and project-level economic considerations. In addition, the
clean energy markets in which we operate remain highly fragmented. We believe our industry experience, operational capabilities, and established
relationships position us competitively in pursuing new project development and supply opportunities. However, competition for these opportunities,
including pricing pressure on fuel supply and other key inputs, may adversely affect the profitability of projects we evaluate and could
render certain opportunities economically unattractive.

Competition

The market for vehicle fuels
is highly competitive. The principal competition for alcohol-based high-clean fuels used in transportation is conventional gasoline and
diesel, as the majority of vehicles in our key markets continue to rely on these fuels. In addition, numerous established participants
compete in the market for alcohol-based high-clean fuels and other alternative vehicle fuels, including alternative vehicle and fuel companies,
waste management and refuse collection companies, industrial gas providers, truck stop and fuel station operators, fuel distributors,
utilities and their affiliates, and other industry participants.

5

As the market for alternative
vehicle fuels continues to expand, we expect the number and diversity of market participants, as well as the level of capital investment
and strategic commitment to alternative fuel programs, to increase. We compete for vehicle fuel customers based on several factors that
influence demand, including fuel cost, supply, availability, quality, cleanliness, and safety; the cost, availability, and reputation
of compatible vehicles and engines; the convenience and accessibility of fueling infrastructure; applicable regulatory mandates and other
governmental requirements; and overall brand recognition.

We believe our products compare
favorably with those of our competitors across these factors. However, certain of our competitors possess substantially greater financial,
marketing, operational, and other resources than we do. As a result, these competitors may be better positioned to respond more rapidly
to shifts in customer preferences, changes in legal requirements, or broader industry and regulatory developments. They may also be able
to devote greater resources to product development, marketing, sales, infrastructure expansion, and systems enhancement, pursue more
aggressive pricing strategies, undertake broader initiatives to increase consumer acceptance of their products, and exert greater influence
over the regulatory environment affecting the vehicle fuels market.

Advertising Business

Fast Approach provides digital
advertising delivery and operational services, with China and North America serving as its two core markets. The Company focuses on executing
and managing advertising campaigns across multiple digital channels, leveraging data-driven optimization and localized operational expertise
to improve campaign performance and return on investment.

In China, Fast Approach assists
advertisers in accessing and operating within a diverse and platform-centric digital advertising ecosystem. In North America, the Company
supports campaign execution across major digital platforms and programmatic advertising networks. Its presence in both regions enables
it to facilitate cross-border advertising execution for clients seeking to expand into new markets.

The Company’s core services
include advertising placement, campaign execution, account management, performance monitoring, and ongoing optimization. Fast Approach
focuses on implementing advertiser-provided strategies by managing media buying processes, setting up campaigns, and continuously adjusting
key parameters such as audience targeting, bidding, and ad creatives based on real-time performance data. Through detailed analytics and
performance tracking, the Company works to improve key metrics such as click-through rates, conversion rates, and customer acquisition
costs.

Fast Approach collaborates
with advertising platforms, media publishers, and technology partners to access advertising inventory and delivery tools. These relationships
allow the Company to execute campaigns efficiently across a variety of formats, including display advertising, search-based advertising,
and social media promotion.

Competition

The digital advertising services
industry is highly competitive and rapidly evolving. Fast Approach competes with a broad range of market participants, including large
global advertising agencies, major demand-side and programmatic advertising platforms, specialized cross-border marketing firms, local
media buying agencies, and smaller boutique digital advertising service providers in both China and North America.

In both core markets, the
Company faces competition from well-established industry participants with significantly greater financial, technical, marketing, and
personnel resources, broader client relationships, and more extensive proprietary technology capabilities. These larger competitors may
benefit from stronger brand recognition, deeper platform integrations, and the ability to offer a wider range of end-to-end marketing
solutions, including strategy, creative development, data analytics, and customer relationship management services.

At the same time, the Company
also competes with numerous smaller regional and niche service providers that often focus on specific industries, localized customer segments,
or individual advertising platforms. These smaller competitors may compete aggressively on pricing, service flexibility, or specialized
local market knowledge.

Fast Approach primarily competes
on the basis of its cross-border campaign execution capabilities, operational expertise in both China and North America, responsiveness
to client needs, ability to optimize campaign performance through real-time data analysis, and experience navigating platform-specific
advertising requirements in different jurisdictions. The Company believes its localized execution capabilities and familiarity with multi-market
advertising ecosystems position it to serve clients seeking efficient campaign delivery across borders.

Competition in the industry
is based on factors including campaign performance, pricing, quality of service, speed of execution, platform access, data analytics capabilities,
client relationships, and the ability to adapt to frequent changes in platform algorithms, privacy requirements, and advertising policies.

6

The Company primarily serves
advertisers seeking to enhance brand exposure, user acquisition, and sales conversion in both domestic and international markets. By focusing
on execution and operational optimization rather than strategic planning, Fast Approach positions itself as a performance-driven service
provider capable of delivering scalable and efficient advertising solutions.

Fast Approach Inc. has continued
to invest in technology development and is strategically expanding toward AI-driven GEO optimization and intelligent marketing automation,
positioning the Company to compete in the next generation of digital marketing solutions.

The Company’s development
initiatives are supported by a combination of internal technical resources and external collaborators, including advisors and contributors
with expertise in artificial intelligence, natural language processing (NLP), and mental health applications. This integrated technical
and domain expertise enhances the Company’s research and development capabilities in applied AI systems.

As part of these efforts,
the Company is developing a prototype dialogue agent intended for early-stage mental health support. This initiative reflects the Company’s
broader strategy to leverage advanced AI technologies to create scalable, data-driven solutions across digital marketing and emerging
AI-enabled application areas.

Organizational Structure

Planet Green was incorporated
in Delaware on February 4, 1986 and effective on November 12, 2009, Planet Green reincorporated in Nevada from Delaware. Planet Green
was formerly known as American Lorain Corporation.

The following diagram illustrates our corporate
structure including our subsidiaries.

7

Reverse Split

The board of directors approved
a reverse stock split of the Company’s authorized and issued and outstanding shares of common stock, par value $0.001 per share
(“Common Stock”), at a ratio of 1-for-10 (the “Reverse Stock Split”). The Reverse Stock Split became legally effective
as of 4:01 p.m. Eastern Standard Time on May 31, 2024 (the “Legal Effective Date”), and the Common Stock was open for trading
on NYSE American on a reverse split-adjusted basis on June 3, 2024, under the existing trading symbol “PLAG”.

On the Legal Effective Date,
every ten (10) shares of the Common Stock issued and outstanding or held as treasury stock has been automatically converted into one (1)
new share of Common Stock. The total number of shares of Common Stock authorized for issuance has been reduced by a corresponding proportion
from 1,000,000,000 shares to 100,000,000 shares of Common Stock. The par value per share of the Common Stock remained unchanged at $0.001
per share. The Common Stock was assigned a new CUSIP number 72703U 201 following the reverse stock split.

Each shareholder’s percentage
ownership interest in the Company and proportional voting power remains virtually unchanged as a result of the Reverse Stock Split, except
for minor changes and adjustments that will result from rounding fractional shares into whole shares. The rights and privileges of the
holders of shares of Common Stock were substantially unaffected by the Reverse Stock Split. No fractional shares will be issued in connection
with the Reverse Stock Split. Fractional shares resulting from the Reverse Stock Split will be rounded up to the nearest whole share.

Subsidiaries

On May 9, 2019, the Company
and Shanghai Xunyang Internet Technology Co., Ltd. (the “Shanghai Xunyang”), a subsidiary of the Company, entered into a Share
Exchange Agreement with Xianning Bozhuang, and each of the shareholders of Xianning Bozhuang, pursuant to which, among other things and
subject to the terms and conditions contained therein, Shanghai Xunyang agreed to effect an acquisition of Xianning Bozhuang by acquiring
from the Sellers all of the outstanding equity interests of Xianning Bozhuang. On May 14, 2019, the Company closed the acquisition transaction
and Shanghai Xunyang entered into a series of VIE agreements with Xianning Bozhuang and its shareholders. For company internal restructure
purpose, on December 20, 2019, Xianning Bozhuang terminated the VIE agreements with Shanghai Xunyang and entered into similar series of
VIE agreements with Jiayi Technologies on the same day. On August 2, 2021, as part of the internal restructure efforts to remove VIE arrangements,
the Company and its subsidiary terminated series of VIE agreements and acquired 100% equity ownership of Xianning Bozhuang.

On June 5, 2020, the Company
entered into a share exchange agreement with Fast Approach to acquire all outstanding shares of Fast Approach, a corporation incorporated
under the laws of Canada and in the business of operating a demand side platform. Upon completing the transaction, Fast Approach became
a wholly owned subsidiary of the Company. Fast Approach owns 100% equity of Shanghai Shuning.

On January 4, 2021, through
Jiayi Technologies, the Company entered into a series of VIE agreements with Jingshan Sanhe as well as its shareholders. The Company is
considered the primary beneficiary of Jingshan Sanhe and it consolidates its accounts as VIE. On September 10, 2021, as part of the internal
restructure efforts to remove VIE arrangements, Hubei Bulaisi acquired 85% equity ownership of Jingshan Sanhe and Jiayi Technologies terminated
the VIE agreements with Jingshan Sanhe on the same date.

On September 14, 2022, the
Company and Hubei Bulaisi, a subsidiary of the Company, entered into a Share Purchase Agreement with a shareholder of Jingshan Sanhe Luckysky
acquiring the remaining 15% of the outstanding equity interests of Jingshan Sanhe Luckysky. Upon closing of the transaction, Hubei Bulaisi,
acquired 100% equity ownership of Jingshan Sanhe Luckysky.

On December 9, 2021, the Company
and Jiayi Technologies, a subsidiary of the Company, entered into a Share Exchange Agreement with Shandong Yunchu and each of shareholders
of Shandong Yunchu. Upon closing of the transaction, Jiayi Technologies acquired 100% equity ownership of Shandong Yunchu. The Board resolved
to discontinue the operation of Shandong Yunchu on April 30, 2025, and subsequently, on September 1, 2025, the Company disposed of its
100% equity interest in Promising Prospect for nominal consideration. Promising Prospect indirectly held 100% of the equity interest in Shandong Yunchu through Jiayi Technologies and did not own any other
operating assets of the Company. As a result of the disposition, Shandong Yunchu, Promising Prospect and Jiayi Technologies ceased to
be subsidiaries of the Company.

On November 26, 2025, Bozhuang
entered into a Share Purchase Agreements with shareholders of Hubei Shengsili, to acquire 67% equity interests in Hubei Shengsili for
a consideration of $143, resulting in goodwill of $7,005.

On December 16, 2025, Promising
Prospect established PinnacleTech, a HK limited liability company, as a wholly owned subsidiary. On December 24, 2026, PinnacleTech established
Dingfeng Technology, a PRC limited liability company, as a wholly owned subsidiary.

On March 10, 2026, the Company
incorporated Hubei Taihe Biotechnology Co., Ltd., a PRC limited liability company.

8

Cash Flows through Our Organization:

Planet Green is a holding
company with no material operations of its own. We currently conduct our operations through our subsidiaries including our WFOEs and their
respective subsidiaries. Cash is transferred through our organization in the manner as follows: (1) we may transfer funds to our WFOEs
through our Hong Kong subsidiaries, PinnacleTech HK Limited, and Bless Chemical Co., Ltd. (HK) by additional capital contributions or
shareholder loans, as the case may be; and (2) our PRC subsidiaries may make dividends or other distributions to Planet Green. We do not
have cash management policies dictating how funds are transferred throughout our organization. We may encounter difficulties in our ability
to transfer cash between PRC subsidiaries and non-PRC subsidiaries largely due to various PRC laws and regulations imposed on foreign
exchange. If we intend to distribute dividends through Planet Green, our WFOEs will transfer the dividends to our Hong Kong subsidiaries
in accordance with the laws and regulations of the PRC, and then our Hong Kong subsidiaries will transfer the dividends to the Planet
Green, and the dividends will be distributed from the Planet Green to all shareholders respectively in proportion to the shares they hold,
regardless of whether the shareholders are U.S. investors or investors in other countries or regions. There can be no assurance that the
PRC government will not intervene or impose restrictions on the Company’s ability to transfer cash out of China.

Effects of PRC foreign exchange regulations
on our ability to transfer assets within our organization

Current foreign exchange and
other regulations in the PRC may restrict our PRC subsidiaries and their ability to transfer their net assets to Planet Green and its
subsidiaries and to investors. The PRC government imposes controls on the convertibility of the Renminbi into foreign currencies and,
in certain cases, the remittance of currency out of China. Under our current corporate structure, Planet Green as the holding company
may rely on dividend payments from its subsidiaries to fund any cash and financing requirements Planet Green may have. Under existing
PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service-related
foreign exchange transactions, can be made in foreign currencies without prior approval of the State Administration of Foreign Exchange
(the “SAFE”) by complying with certain procedural requirements. Specifically, under the existing exchange restrictions, without
prior approval of SAFE, cash generated from the operations of our PRC subsidiaries in China may be used to pay dividends to Planet Green.
However, approval from or registration with appropriate government authorities is required where Renminbi is to be converted into foreign
currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. As a result,
we need to obtain SAFE approval to use cash generated from the operations of our PRC subsidiaries and VIE to pay off their respective
debt in a currency other than Renminbi owed to entities outside China, or to make other capital expenditure payments outside China in
a currency other than Renminbi.

In light of the flood of capital
outflows of China in 2016 due to the weakening Renminbi, the PRC government has imposed more restrictive foreign exchange policies and
stepped up scrutiny of major outbound capital movement including overseas direct investment. More restrictions and substantial vetting
process are put in place by SAFE to regulate cross-border transactions falling under the capital account. If any of Planet Green’s
shareholders regulated by such policies fail to satisfy the applicable overseas direct investment filing or approval requirement timely
or at all, it may be subject to penalties from the relevant PRC authorities. The PRC government may at its discretion further restrict
access in the future to foreign currencies for current account transactions. If the foreign exchange control system prevents Planet Green
from obtaining sufficient foreign currencies to satisfy Planet Green’s foreign currency demands, Planet Green may not be able to
pay dividends in foreign currencies to its shareholders.

9

Recent Regulatory Development

As we conduct substantially
all of our operations in China, we are subject to legal and operational risks associated with having substantially all of our operations
in China, including changes in the legal, political and economic policies of the Chinese government, the relations between China and the
United States, or Chinese or United States regulations may materially and adversely affect our business, financial condition and results
of operations. PRC laws and regulations governing our current business operations are sometimes vague and uncertain, and therefore, these
risks may result in a material change in our operations and the value of our common stock or could significantly limit or completely hinder
our ability to offer or continue to offer our securities to investors and cause the value of such securities to significantly decline
or be worthless. Recently, the PRC government initiated a series of regulatory actions and made a number of public statements on the regulation
of business operations in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing
supervision over China-based companies listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding
efforts in anti-monopoly enforcement. We have relied on the opinion of our PRC counsel, Hubei Kaicheng Law Office, that as of the date
of this Annual Report, we are not directly subject to these regulatory actions or statements, as we have not implemented any monopolistic
behavior and our business does not involve large-scale collection of user data, implicate cybersecurity, or involve any other type of
restricted industry. As further advised by our PRC counsel, Hubei Kaicheng Law Office, as of the date of this Annual Report, no relevant
laws or regulations in the PRC explicitly require us to seek approval from the China Securities Regulatory Commission (the “CSRC”)
or any other PRC governmental authorities for our overseas listing or securities offering plans, nor has our company or any of our subsidiaries
received any inquiry, notice, warning or sanctions regarding our offering of securities from the CSRC or any other PRC governmental authorities.
However, since these statements and regulatory actions by the PRC government are newly published and official guidance and related implementation
rules have not been issued, it is highly uncertain what potential impact such modified or new laws and regulations will have on our daily
business operations, or ability to accept foreign investments and list on a U.S. or other foreign exchange. The Standing Committee of
the National People’s Congress (the “SCNPC”) or other PRC regulatory authorities may in the future promulgate laws,
regulations or implementing rules that require our company or any of our subsidiaries to obtain regulatory approval from Chinese authorities
before offering securities in the U.S. In other words, although the Company is currently not required to obtain permission from any of
the PRC central or local government and has not received any denial to list on the U.S. exchange, our operations could be adversely affected,
directly or indirectly; our ability to offer, or continue to offer, securities to investors would be potentially hindered and the value
of our securities might significantly decline or be worthless, by existing or future laws and regulations relating to its business or
industry or by intervene or interruption by PRC governmental authorities, if we or our subsidiaries (i) do not receive or maintain such
permissions or approvals, (ii) inadvertently conclude that such permissions or approvals are not required, (iii) applicable laws, regulations,
or interpretations change and we are required to obtain such permissions or approvals in the future, or (iv) any intervention or interruption
by PRC governmental with little advance notice.

Enforcement of Civil Liabilities

Currently all our directors
and majority of senior executive officers either physically reside in China for a significant portion of each year, and/or are PRC nationals.
As a result, it may be difficult for you to effect service of process upon us or those persons inside mainland China. In addition, there
is uncertainty as to whether the PRC courts would recognize or enforce judgments of U.S. courts against us or such persons predicated
upon the civil liability provisions of U.S. securities laws or those of any U.S. state.

The recognition and enforcement
of foreign judgments are provided for under the PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments
in accordance with the requirements of the PRC Civil Procedures Law based either on treaties between China and the country where
the judgment is made or on principles of reciprocity between jurisdictions. China does not have any treaties or other forms of written
arrangement with the U.S. that provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to
the PRC Civil Procedures Law, the PRC courts will not enforce a foreign judgment against us or our directors and officers if they
decide that the judgment violates the basic principles of PRC laws or national sovereignty, security, or public interest. As a result,
it is uncertain whether and on what basis a PRC court would enforce a judgment rendered by a court in the U.S.

It may also be difficult for
you or overseas regulators to conduct investigations or collect evidence within China. For example, in China, there are significant legal
and other obstacles to obtaining information needed for shareholder investigations or litigation outside China or otherwise with respect
to foreign entities. Although the authorities in China may establish a regulatory cooperation mechanism with its counterparts of another
country or region to monitor and oversee cross-border securities activities, such regulatory cooperation with the securities regulatory
authorities in the U.S. may not be efficient in the absence of a practical cooperation mechanism. Furthermore, according to Article 177
of the PRC Securities Law, or “Article 177,” which became effective in March 2020, no overseas securities regulator is allowed
to directly conduct investigations or evidence collection activities within the territory of the PRC. Article 177 further provides that
Chinese entities and individuals are not allowed to provide documents or materials related to securities business activities to foreign
agencies without prior consent from the securities regulatory authority of the PRC State Council and the competent departments of the
PRC State Council. While detailed interpretation of or implementing rules under Article 177 have yet to be promulgated, the inability
for an overseas securities regulator to directly conduct an investigation or evidence collection activities within China may further increase
difficulties faced by you in protecting your interests.

10

Our Manufacturing Facilities

General

We currently manufacture our
products and provide services in Jingshan City and the Xianning City of Hubei Province and Toronto in Canada.

The following table indicates the year that operations
commenced at each of the facilities and the size of the facilities.

Facility
Year

Operations

Commenced
Facility

Size (square

meters)

Xianning Bozhuang*
2013
33,333

Jingshan Sanhe**
2018
11,018

*
Became a VIE in May 2019 and a subsidiary in August 2021.

**
Became a subsidiary in September 2021.

Production Lines

We currently manufacture our products through production
lines.

Our operations begin with
the procurement of high-quality fresh green tea leaves from selected suppliers. These raw materials undergo a series of processing steps,
including withering, rolling, controlled microbial fermentation, and drying. The fermentation stage is critical, as it involves carefully
managed microbial activity that develops the tea’s distinctive flavor profile, aroma, and color, as well as its characteristic aging
potential. Through this process, the tea acquires the attributes commonly associated with traditional dark tea products.

Following fermentation, the
tea is refined and compressed into standardized shapes, primarily brick form, to facilitate storage, transportation, and long-term aging.
Compressed products such as Qingzhuan tea are valued for their durability, extended shelf life, and ability to improve in taste and complexity
over time under appropriate storage conditions. Leveraging our expertise in processing and fermentation, we focus on preserving these
traditional qualities while enhancing product consistency and usability.

The production process for
our clean fuel oil is illustrated as follows. The self-control design of the facilities for storage of raw materials and addition of additives
shall, in accordance with the requirements of the process, conduct centralized indication and adjustment of the temperature, flow rate
and liquid level of the raw oil tanks, raw oil metering tanks, product oil allocation tanks and finished oil tanks during the fuel blending
process; realize remote monitoring of the whole fuel production process, and conduct on-the-spot indication of pressure and partial flow
rate.

The following table shows the number and types
of production lines, the types of products produced and the production capacity as of the date of this report:

Facility

Production Lines

Product Portfolio

Capacity

Xianning Bozhuang

There are six production lines: the production line of cyan brick tea with traditional handicraft; the production line of cyan brick tea; the production line of teabag; the production line of green tea and the production line of black tea

Cyan brick tea, black tea and green tea

Production line with 5,020 tons of production capacity

Jingshan Sanhe

There are two production lines: the production line of alcohol fuel
and the production line of fuel additive

Alcohol based clean fuel, liquid wax, arene and biomass fuel

Two production lines with a total production capacity of 300,000 tons/year for ethanol fuel, and 3000 tons/year for fuel additive

We operate our production lines year-round.

11

Raw Materials

Our Supply Sources

Our business depends on the
availability of a reliable supply of various raw materials and products, including tea leaves, chemical materials, alcohol-based fuel
inputs, methanol fuel additives, and diesel. Due to the diversity and availability of supply sources for these materials, we believe our
current supply is adequate to support our operations.

We source our raw materials
primarily through domestic procurement channels to support our tea production, methanol fuel additive, alcohol-based fuel, and diesel
businesses.

We select suppliers based
principally on pricing, product quality, reliability of supply, and consistency of delivery. We typically procure materials from multiple
domestic suppliers, including certain suppliers with whom we have maintained long-term business relationships. Our suppliers generally
include wholesale agricultural product companies, food production enterprises, tea processing and packaging companies, and wholesalers
of chemical products and diesel.

Our Customers

Our products are primarily
sold in the domestic market in the People’s Republic of China through a combination of direct sales, sales agency relationships
and established distribution channels.

For our tea products business,
we sell primarily to regional distributors, wholesale customers, in the PRC market. In addition to direct product sales, we also engage
sales agents to expand market coverage, strengthen channel penetration, and enhance product distribution across targeted regions.

For our methanol fuel additive,
alcohol based fuel and diesel products business, we market and sell our products through direct customer sales, the construction and operation
of refueling facilities, and technical cooperation arrangements with third-party business partners and commercial users. Our customers
in this segment generally include transportation service providers, industrial users, fleet operators, and other enterprises seeking alternative
or cleaner fuel solutions.

We continue to expand our
customer base by strengthening relationships with existing channel partners, broadening our sales agent network, and pursuing strategic
cooperation opportunities to enhance market reach.

Our Sales and Marketing Efforts

In 2025, our sales and marketing
efforts are primarily focused on maintaining relationships with long-term customers, expanding our network of sales agents, and strengthening
our internal sales team to develop and manage distribution channels. We emphasize a relationship-driven and channel-based approach to
enhance customer retention, broaden market coverage, and drive revenue growth.

We place significant importance
on maintaining and strengthening relationships with our existing long-term customers, who represent a stable and recurring source of revenue.
Our customer retention strategy includes regular communication, consistent product and service quality, and responsive support to address
evolving customer needs. By fostering long-term partnerships, we aim to enhance customer loyalty, encourage repeat transactions, and generate
referrals that contribute to organic growth.

In addition, we have expanded
our sales capabilities by engaging sales agents to support market development and customer acquisition. These sales agents assist in promoting
our products and services, identifying potential customers, and facilitating transactions, particularly in regions where we do not maintain
a direct operational presence. This model allows us to extend our geographic reach efficiently and penetrate new markets without incurring
significant fixed costs, while maintaining flexibility in managing sales expenses.

Complementing our sales agent
network, we maintain an internal sales team that is responsible for developing and managing sales channels and distribution relationships.
Our sales team actively engages with distributors, wholesalers, and other channel partners to expand product availability and improve
market penetration. They also coordinate closely with sales agents to align sales strategies, support channel partners, and ensure consistent
execution across different markets.

Through the combination of
strong customer relationship management, an expanding sales agent network, and a dedicated internal sales team focused on channel development,
we aim to strengthen our market presence, enhance distribution efficiency, and support sustainable business growth.

12

Intellectual Property

Patents

The company vigorously implements
scientific and technological innovation. Jingshan Sanhe obtains 12 practical patent certificates from the State Intellectual Property
Office of the PRC, which includes a diesel exhaust cleaner and its preparation method, a kind of automobile exhaust cleaner and preparation
method, a kind of filtering device for exhaust port of cleaning liquid production plant, a kind of automobile cleaner dispensing device,
a kind of liquid dispensing equipment, a kind of mixing and stirring tank, a kind of cleaning brush for cleaning agent storage tank, a
kind of reactor for producing auto cleaner, a kind of cleaning brush for cleaning agent mixing kettle, a kind of mixing tank, a cleaning
tool for cleaning the reactor for detergent production and a kind of mixing and defoaming tank. The company will give full play to the
advantages of independent intellectual property rights, continue to innovate, maintain the leading technology and enhance the core competitiveness
of the company.

We take reasonable steps to
protect our proprietary information and trade secrets, such as limiting disclosure of proprietary plans, methods and other similar information
on a need-to-know basis and requiring employees with access to our proprietary technology to enter into confidentiality arrangements.
We believe that our proprietary technology and trade secrets are adequately protected.

Our Employees

As of December 31, 2025, we
had a total of 45 employees. Approximately 45 of our full-time employees are directly employed by our subsidiaries.

The following table sets forth the allocation of
employees, both direct and leased, by job function.

Number of

Department
Employees

Production
15

Purchasing
2

Research and Development
4

Quality Control
2

Sales
4

Finance
5

Management
13

Total
45

We have not experienced any
significant problems or disruption to our operations due to labor disputes, nor have we experienced any difficulties in recruitment and
retention of experienced staff.

We compensate our production
line employees by unit produced (piece work) and compensate other employees with a base salary and bonus based on performance. We also
provide training for our staffs from time to time to enhance their technical and product knowledge, including knowledge of industry quality
standards.

Our employees participate
in state pension scheme and various types of social insurance organized by municipal and provincial governments. Outsourcing agents are
responsible for contributions on behalf of the leased employees.

Our Research and Development Activities

We have research and development
staff at each of our facilities. In total, 4 employees are dedicated to research and development.

Jingshan Sanhe owns a professional
laboratory which includes 17 sets of professional experimental equipment operated by two high-end scientific research experts to ensure
the high quality of raw materials and products.

We rely heavily on customer
feedback to assist us in the modification and development of our products. We also utilize customer feedback to assist us in the development
of new products.

The amount we spent on research
and development activities during the years ended December 31, 2025 was not a material portion of our total expenses for the year.

13

Government Regulation

As a company that continuously
strives to create new value, we have been doing business in the following areas: production, processing, and sale of dark tea and manufacture
and distribution of methanol fuel additives, alcohol based fuel, and diesel fuel.

Our tea product production
and sales business is subject to regulations of China’s Agricultural Ministry and Ministry of Health. This regulatory scheme governs
the manufacture (including composition and ingredients), labeling, packaging and safety of food. It also regulates manufacturing practices,
including quality assurance programs, for foods, through its current manufacturing practice regulations, and specifies the standards of
identity for certain foods. We have obtained approvals from Chinese authorities for products that requires the approval under regulations,
including quality safety approval from government.

Our manufacturing and sales
of chemical products business is subject to multiple regulations under PRC law. We have complete certificates, including the work safety
license, production license and emission license. We have passed the environmental assessment acceptance and currently works on the promotion
to the second level of work safety standardization from the third level. Our operation meets the requirements of relevant national laws,
regulations, standards and specifications, as well as other the requirements of national management departments at all levels.