Stock Code: 300301
Stock Abbreviation: ST Changfang
Announcement Number: 2026-054
Shenzhen Changfang Group Co., Ltd.
Announcement on the Correction of Accounting Errors for 2020
The Company and all members of its Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false records, misleading statements, or significant omissions.
Shenzhen Changfang Group Co., Ltd. (hereinafter referred to as the "Company" or "Changfang Group") held the 19th meeting of the Fifth Board of Directors on July 20, 2026, and reviewed and approved the "Proposal on the Correction of Accounting Errors for 2020". In accordance with "Accounting Standards for Business Enterprises No. 28 — Changes in Accounting Policies, Accounting Estimates and Errors", "Rules for the Preparation and Disclosure of Information Disclosure of Publicly Issued Securities Companies No. 19 — Correction and Related Disclosure of Financial Information", and the "Administrative Penalty Decision" (No. [2025] 6) issued by the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the "Shenzhen Regulatory Bureau"), the Company is retrospectively correcting accounting errors in its 2020 financial statements. The specific details are hereby announced as follows:
I. Reasons for the Correction of Accounting Errors
On June 27, 2025, the Company received the "Administrative Penalty Decision" (No. [2025] 6) issued by the Shenzhen Regulatory Bureau. The investigation found that Kangmingsheng (Shenzhen) Technology Co., Ltd. (hereinafter referred to as "Kangmingsheng"), a subsidiary of the Company, overstated profits and accounts receivable by not accounting for sales rebates, specifically as follows:
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In 2020, Kangmingsheng understated sales rebate expenses by RMB 7,977,793.64, thereby overstating profits by RMB 7,977,793.64, accounting for 54.90% of the absolute value of the Company's total profit for the period. As of December 31, 2020, Kangmingsheng overstated accounts receivable by RMB 147,969,495.91, accounting for 5.40% of the Company's total disclosed assets for the period.
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In 2021, Kangmingsheng understated sales rebate expenses by RMB 5,487,345.17, thereby overstating profits by RMB 5,487,345.17, accounting for 2.02% of the