West Long Scientific
- XILONG SCIENTIFIC
Announcement No.: 2026-054
West Long Scientific Co., Ltd.
Announcement on the Progress of Company Bank Account Partial Fund Freezing and Performance Commitment Compensation
The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and there are no false records, misleading statements, or material omissions.
Recently, West Long Scientific Co., Ltd. (hereinafter referred to as the "Company") learned through inquiries of bank accounts that part of the Company's bank account funds have been frozen. The relevant situation is hereby announced as follows:
I. Basic Situation of Partial Fund Freezing in the Company's Bank Accounts
| Company Name | Opening Bank | Account Nature | Bank Account | Frozen Amount (RMB Ten Thousand) |
|---|---|---|---|---|
| West Long Scientific Co., Ltd. | China Construction Bank Co., Ltd. Shantou Branch | Basic Deposit Account | 44**************0116 | 3,250 |
Note: 1. The funds not frozen in the above bank account are still sufficient, and the freezing of the above funds in this account will not affect the normal use of this account; 2. Other bank accounts of the Company and bank accounts of subsidiaries can be used normally.
II. Reason for Partial Fund Freezing in the Account and Progress of Performance Commitment Compensation Matters
Upon understanding, the reason for the partial freezing of the Company's bank account funds is a dispute over performance commitment compensation related to the transfer of part of the subsidiary's equity, which led the transferee, Jinan Gaoxin Biological Technology Co., Ltd., to apply for property preservation from the court. As of the disclosure date of this announcement, the Company has not received any court civil ruling letters or other legal documents regarding the freezing matter.
(I) Basic Situation of Equity Transfer Involved in Performance Commitment
On December 7, 2021, the Company transferred 60% of the equity of the target company, Shandong Aike Wei Biotechnology Co., Ltd. (hereinafter referred to as the "Target Company" or "Aike Wei Biotechnology"), to the transferees Jinan Gaoxin Bio, Gaoxin Caixin, and Gaoxin Sheng. The Company committed that Aike Wei Biotechnology's net profit after deducting non-recurring gains and losses audited in 2022 would not be less than RMB 49 million; in 2023, it would not be less than RMB 63 million; and in 2024, it would not be less than RMB 78 million. The cumulative audited net profit after deducting non-recurring gains and losses from 2022 to 2024 would not be less than RMB 190 million. The aforementioned net profit refers to the net profit attributable to the parent company's shareholders audited by the auditing institution designated or approved by the transferee.
According to the audit by Zhongxinghua Certified Public Accountants (Special General Partnership), from 2022 to 2024, Aike Wei Biotechnology achieved a cumulative audited net profit attributable to the parent company's shareholders of RMB 94.138 million, completing 49.55% of the overall performance commitment, and failed to complete the performance commitm