Securities Code: 002042 Securities Abbreviation: Huafu Fashion Announcement No.: 2026-20
Huafu Fashion Co., Ltd. Announcement on Correction of Prior Accounting Errors
The Company and its Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or material omissions.
Key Information Reminder: The correction of prior accounting errors primarily involves a reduction in operating revenue and operating costs for the Company's first quarter, first half, and third quarter reports of 2025. This adjustment does not affect financial information such as total assets, net assets, net profit attributable to shareholders of the listed company, and net cash flow from operating activities. The correction of prior accounting errors does not involve any significant changes in the Company's core business or operating model. The corrected financial information will be more truthful and accurate, and will not have a material adverse impact on the Company's ability to continue its operations.
Huafu Fashion Co., Ltd. (hereinafter referred to as the "Company") held the Fourth Meeting of the Ninth Board of Directors on April 28, 2026, through a combination of on-site and teleconference methods. The meeting deliberated and approved the "Proposal on Correction of Prior Accounting Errors." To ensure the truthfulness, accuracy, and completeness of financial information and to protect the legitimate rights and interests of investors, in accordance with the "Rules for the Preparation and Disclosure of Information for Publicly Issued Securities Companies No. 19 – Correction and Related Disclosure of Financial Information," the "Administrative Measures for Information Disclosure by Listed Companies," and other relevant laws, regulations, and normative documents, the Company, during its recent financial self-inspection and the 2025 audit process, and based on the principle of prudence, has adjusted the revenue recognition method for some of the Company's trade business from the gross method to the net method, and is correcting accounting errors in the first quarter, first half, and third quarter reports of 2025.