Special Risk Warning:
- The company's stock price has closed below its par value (1 yuan) for 14 consecutive trading days (from December 16, 2020, to January 5, 2021). If the stock price remains below par value for 20 consecutive trading days (excluding days when the stock is fully suspended), the Shenzhen Stock Exchange has the authority to terminate the company's stock listing. Thus, there is a risk of the company's stock being delisted.
- The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws. As of now, the company has not received a conclusive opinion or decision regarding this investigation. If significant violations are found, there is a risk of the company's stock being delisted.
- The company's subsidiary, Hangzhou Tianxia Technology Group Co., Ltd. (hereinafter referred to as "Hangzhou Tianxia"), has been applied for bankruptcy liquidation and is currently in the process of attempting a settlement to terminate the bankruptcy proceedings. However, there is significant uncertainty regarding whether a settlement can be reached.
- The company is currently verifying and confirming the related letters received, including the "Letter of Concern Regarding Tianxia Smart City Technology Co., Ltd." (Company Department Concern Letter [2020] No. 12), "Letter of Concern Regarding Tianxia Smart City Technology Co., Ltd." (Company Department Concern Letter [2020] No. 20), and others. The company is actively organizing personnel to address these matters as soon as possible, but due to the complexity of the verification process and limited manpower, there is uncertainty regarding the response time.