I. Reasons for Changes in Accounting Policies
On December 5, 2025, the Ministry of Finance of the People's Republic of China issued the "Interpretation No. 19" (Finance [2025] No. 32), which requires enterprises to control the reporting of financial assets and liabilities. The changes are aimed at improving the accounting treatment of financial instruments and ensuring compliance with relevant regulations.
II. Changes to Previous Accounting Policies
Prior to the changes in accounting policies, the company adhered to the basic standards of enterprise accounting principles and specific accounting guidelines.
III. Impact of Changes on the Company
The changes in accounting policies are based on the requirements of the Ministry of Finance and will affect the company's financial situation and operational results. The company will adjust its financial statements accordingly to reflect the new standards.
IV. Board of Directors' Opinion
The board believes that the changes in accounting policies are necessary to comply with the requirements of the Ministry of Finance and will enhance the company's financial reporting.
V. Reference Documents
- The resolutions of the fifth board of directors' second meeting.
- The resolutions of the fifth board of directors' audit committee's seventh meeting.