000998SZSE

Special Explanation on the 2025 Internal Control Audit Report

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Yuan Longping Agricultural High-Tech Co., Ltd. received an unqualified internal control audit report for 2025 from Tianjian CPA, which included an emphasis on a hacker attack on its subsidiary. The board acknowledged the need to strengthen information security controls but confirmed that the incident does not affect the overall effectiveness of internal controls. The company has taken measures to address the situation, including reporting to authorities and making a provision of RMB 21.243 million, impacting net profit.

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Yuan Longping Agricultural High-Tech Co., Ltd.
Special Explanation on the Company's 2025 Internal Control Audit Report

Tianjian Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Tianjian CPA") conducted an audit of the internal control of Yuan Longping Agricultural High-Tech Co., Ltd. (hereinafter referred to as "the Company") for the year 2025 and issued an unqualified internal control audit report with an emphasis of matter paragraph. In accordance with the "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 1 - Standardized Operations of Main Board Listed Companies" and "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 1 - Business Handling" and other relevant regulations, the Company's board of directors provides the following explanation regarding the matters involved in the emphasis of matter paragraph:

I. Content of the Emphasis of Matter Paragraph in the Internal Control Audit Report
We remind users of the internal control audit report to pay attention to the fact that the overseas operating entity of the subsidiary Longping Agricultural Development Co., Ltd. has encountered organized professional hacker attacks. Based on this incident, we believe that the internal controls related to the Company's information security protection need to be continuously strengthened. As of December 31, 2025, the Company has taken measures as required. The content of this paragraph does not affect the audit opinion already issued on the internal control of the financial report.

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