002406SZSE

Announcement on the Change of Accounting Policies

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This announcement details Xuchang Far East Transmission Shaft Co., Ltd.'s change in accounting policies, effective January 1, 2026, following the Ministry of Finance's issuance of "Enterprise Accounting Standards Interpretation No. 19." The company states this change will not materially impact its financial position, operating results, or cash flows, nor will it harm shareholder interests. The board and supervisory committee have reviewed and approved the change.

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Securities Code: 002406 Securities Abbreviation: Far East Transmission Xuchang Far East Transmission Shaft Co., Ltd. Announcement on the Change of Accounting Policies Announcement No.: 2026-019

The Company and the entire Board of Directors guarantee the content of this information disclosure is true, accurate, and complete, with no false records, misleading statements, or major omissions.

Special Note: This change in accounting policies will have no significant impact on the Company's operating revenue, net profit, or net assets.

Xuchang Far East Transmission Shaft Co., Ltd. (hereinafter referred to as the "Company") held its 18th meeting of the Sixth Board of Directors on March 26, 2026, and deliberated and passed the "Proposal on the Change of Accounting Policies." In accordance with the "Shenzhen Stock Exchange Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 - Normative Operation of Main Board Listed Companies," and other relevant regulations, this change in accounting policies does not require submission to the Company's shareholders' meeting for deliberation. The specific situation is as follows:

I. Overview of the Change in Accounting Policies

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