Tianyin Communication Holdings Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
On April 24, 2026, the Company received the "Decision on Administrative Supervision Measures Against Tianyin Communication Holdings Co., Ltd." (〔2026〕7号) issued by the Jiangxi Securities Regulatory Bureau (hereinafter referred to as "Jiangxi Securities Regulatory Bureau"), which requires the Company to rectify the issues raised in the decision. For specific details, please refer to the announcement disclosed by the Company on April 25, 2026, on the Giant Tide Information Network (http://www.cninfo.com.cn) titled "Announcement on Receiving the Administrative Supervision Measures Decision from Jiangxi Securities Regulatory Bureau and the Regulatory Letter from Shenzhen Stock Exchange" (Announcement No. 2026-006).
After receiving the decision, the Company attached great importance to it and promptly informed its controlling shareholders, directors, senior management, and relevant departments. A comprehensive self-examination was conducted in accordance with relevant laws, regulations, normative documents, and the Company's internal management system. Based on the actual situation of the Company, a rectification report was formulated.
On June 2, 2026, the Company held the 47th meeting of the 9th Board of Directors to review and approve the "Rectification Report on the Jiangxi Securities Regulatory Bureau's Administrative Supervision Measures Decision." The relevant rectification measures and implementation status are reported as follows:
Overall Rectification Work Arrangement
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Enhancing Awareness and Strengthening Compliance
The Company organized all directors, senior management, and key personnel in finance, information disclosure, and internal control to systematically study relevant laws and regulations such as the "Management Measures for Information Disclosure of Listed Companies," "Enterprise Accounting Standards," and "Guidelines for the Application of Internal Control." They recognized the importance of standardized operations. -
Establishing a Rectification Working Group
The rectification working group is led by Chairman Huang Shaowen, with General Manager Liu Yan as the deputy leader. The group includes Financial Officer Zeng Furong, Board Secretary Sun Hailong, and relevant business leaders, clarifying responsibilities and deadlines for this rectification, breaking down issues item by item to ensure rectification is in place. -
Combining Immediate Rectification with Long-term Mechanisms
For issues that can be rectified immediately, standardized handling was completed before the preparation and submission of the 2025 annual report. For matters requiring institutional development, relevant systems were revised and improved simultaneously to promote integrated management within the group.
Specific Rectification Measures for Financial Accounting Issues
(1) Issues Regarding Revenue Recognition Methods and Consolidation Offsetting Errors
Problem Description: The Company improperly applied the gross method and net method for revenue recognition on certain business transactions; errors in consolidation offsetting items were noted, failing to offset receivables and payables for the same customer; accounting errors were found regarding funds with other monetary attributes and discount interest payments.
Rectification Measures:
- Standardizing Revenue Recognition Methods
For the "sales determine purchase" model business pointed out by the inspection team, the Company adjusted the accounting from the gross method to the net method in the preparation of the 2025 annual report. The amount involved is very low relative to the Company's total revenue and does not significantly impact the financial statements. The Company has organized special training for financial personnel to clarify the applicable standards for gross and net methods under various business models.