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Special Explanation on the Deduction of Operating Revenue for Yunnan Lincang Xinyuan Co., Ltd. in 2025

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This document is a special explanation regarding the deduction of operating revenue for Yunnan Lincang Xinyuan Co., Ltd. in 2025, prepared in accordance with Shenzhen Stock Exchange regulations. It confirms that the company's revenue deduction statement has been prepared and disclosed, and the auditors have verified its consistency with the audited financial statements.

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About Yunnan Lincang Xinyuan Co., Ltd.

To all shareholders of Yunnan Lincang Xinyuan Co., Ltd.:

We have audited the 2025 financial statements of Yunnan Lincang Xinyuan Co., Ltd. (hereinafter referred to as Yunnan Xinyuan), including the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements for 2025, the consolidated and parent company cash flow statements, the consolidated and parent company statements of changes in owners' equity, and the related financial statement notes. We issued an unqualified audit report on April 21, 2026, under report number XYZH/2026KMAA1B0074.

In accordance with the "Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 1 - Business Processing" (hereinafter referred to as Revenue Deduction), Yunnan Xinyuan has prepared the attached Statement of Operating Revenue Deductions for Yunnan Lincang Xinyuan Co., Ltd. for 2025 (hereinafter referred to as the Revenue Deduction Statement).

It is Yunnan Xinyuan's responsibility to prepare and disclose the Revenue Deduction Statement in accordance with the relevant regulations on operating revenue deductions, and to ensure its compliance, truthfulness, accuracy, and completeness.

We have cross-checked the information contained in the Revenue Deduction Statement with the accounting materials and audited financial statements that we examined when auditing Yunnan Xinyuan's 2025 financial statements. We have not found any material inconsistencies.

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