Announcement on Progress Regarding Company Stock Being Subject to Other Risk Warning
The Company and the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.
Special Reminder:
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Due to the Company's (hereinafter referred to as the "Company") 2025 annual financial report internal control audit report receiving a negative opinion, in accordance with Article 9.4, Item 4 of the "Shenzhen Stock Exchange GEM Stock Listing Rules" (2026 Revision), the Company's stock will be subject to an other risk warning starting from the opening of trading on May 6, 2026.
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In accordance with Article 9.9 of the "Shenzhen Stock Exchange GEM Stock Listing Rules," during the period when the stock is subject to an other risk warning, the Company shall disclose a progress announcement at least once a month until the corresponding situation is resolved. Article 10.4.4 stipulates that after disclosing a risk warning announcement, the Company shall disclose the progress and risk warning announcement at least once a month until the corresponding situation is resolved or the Company's stock trading is subject to a delisting risk warning by the Shenzhen Stock Exchange.
I. Basic Situation of Implementing Other Risk Warning
Dahua Certified Public Accountants (Special General Partnership) issued a negative opinion on the Company's 2025 financial report internal control audit report. In accordance with Article 9.4, Item 4 of the "Shenzhen Stock Exchange GEM Stock Listing Rules," "If a listed company falls under any of the following circumstances, the Exchange shall implement an other risk warning on its stock trading: (4) The internal control audit report for the financial report of the most recent accounting year is issued with a disclaimer of opinion or a negative opinion, or the internal control audit report for the financial report is not disclosed in accordance with regulations." The Company's stock has been subject to an "Other Risk Warning (ST)."
II. Rectification Measures and Progress
The Company's Audit Committee, Board of Directors, and management attach great importance to this rectification matter. The rectification measures and progress are as follows:
1. Progress of Overall Work
The Company has engaged Zhidazhiyuan (Shenzhen) Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Zhidazhiyuan") as an independent third-party audit institution to conduct a special audit of internal controls for the Company and to issue a special audit opinion. Simultaneously, Beijing Rongpeng Law Firm has been engaged to provide specialized legal services for the Company's internal control rectification work, ensuring the compliant advancement of the rectification process.