Announcement on the Correction of Prior Period Accounting Errors

Hunan Friendship Apollo Commercial 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, without false records, misleading statements, or significant omissions.

I. Reasons for the Correction of Prior Period Accounting Errors

According to the requirements of the Ministry of Finance's quality inspection of accounting firms in 2025, the Company should calculate deferred tax assets and deferred tax liabilities based on tax subjects and report them on a net basis. In accordance with the "Accounting Standards for Enterprises No. 28 - Changes in Accounting Policies, Accounting Estimates, and Corrections of Errors," the Company has adjusted relevant items and amounts in the parent company and consolidated financial statements at the beginning of 2025 using the retrospective restatement method.

II. Impact of the Correction on Financial Statements

This correction only involves adjustments to the presentation of relevant items in the consolidated balance sheet and the parent company's balance sheet in the "2024 Annual Report" and the first three quarterly reports of 2025, and does not involve the income statement, cash flow statement, or statement of changes in equity. This correction will not change the nature of the company's profit or loss for the relevant years and will not have a significant impact on the company's financial condition, operating results, or production and operation activities. The specific situations are as follows:

1. Impact on the Financial Statements as of December 31, 2024

(1) Consolidated Balance Sheet