Explanation from the Audit Committee on the Correction of Prior Accounting Errors

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On April 24, 2026, the Audit Committee of Hunan Friendship Apollo Commercial Co., Ltd. approved a proposal to correct prior accounting errors. This correction aligns with relevant accounting standards and disclosure rules, ensuring that the revised financial data accurately reflects the company's financial status and operational results. The committee confirmed that the corrections do not harm the interests of the company or its shareholders.

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