Tianli Lithium Energy Group Co., Ltd.
Announcement on Correction of Prior Accounting Errors
The Company and all members of its Board of Directors guarantee the content of this information disclosure is true, accurate, and complete, and that there are no false representations, misleading statements, or material omissions.
Key Information Prompt:
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The content of this accounting error correction involves adjustments to the Company's prepaid accounts, other receivables, goodwill, and capital reserves for 2023 to 2025, and correspondingly adjusts the main financial data for these years.
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The correction of prior accounting errors by the Company will not change the nature of profit or loss in the previously disclosed annual financial statements, nor will it result in negative net assets for the previously disclosed annual financial statements.
Tianli Lithium Energy Group Co., Ltd. (hereinafter referred to as the "Company") held the 24th meeting of the Fourth Board of Directors on August 13, 2026, and deliberated and passed the "Proposal on Correction of Prior Accounting Errors." It was agreed that in accordance with "Accounting Standards for Business Enterprises No. 28 – Changes in Accounting Policies, Accounting Estimates and Errors" and "Rules for the Preparation and Reporting of Information Disclosure by Companies Issuing Securities No. 19 – Correction and Related Disclosure of Financial Information," the consolidated financial statements and the parent company's financial statements for 2023, 2024, and 2025 will be corrected. This proposal does not require submission to the Company's shareholders' meeting for deliberation. The specific situation is hereby announced as follows:
I. Reasons for the Correction of Prior Accounting Errors
- Related Party Non-Operational Fund Occupation
Upon self-inspection, the Company discovered that in 2023 and 2024, its controlling shareholder and related parties, through the Company and its subsidiaries, entered into procurement contracts for lithium salt and photovoltaic bracket equipment with third parties, and used bank deposit certificate pledges, which constituted related party fund occupation. This was not fully recognized previously.
Based on the principle of prudence, the Company has additionally recognized related party fund occupation of RMB 5 million for 2023 and RMB 135.7678 million for 2024, and has adjusted the relevant balance sheets, cash flow statements, and other items accordingly.
In accordance with "Accounting Standards for Business Enterprises No. 28 – Changes in Accounting Policies, Accounting Estimates and Errors," "Administrative Measures for Information Disclosure of Listed Companies," and relevant regulations of the Shenzhen Stock Exchange, the Company has treated the above matters as prior accounting errors. This accounting error correction involves adjustments to the Company's prepaid accounts and other receivables for 2023 and 2024, and correspondingly adjusts the main financial data for 2023 and 2024.
- Consolidation of Ya'an Tianlan New Material Technology Co., Ltd.
On May 30, 2023, the Company signed an equity transfer agreement with Chengdu Ruinang Gaoya New Material Technology Co., Ltd. (hereinafter referred to as "Chengdu Ruinang"). According to the agreement, the Company acquired 55.00% of the equity held by Chengdu Ruinang in Ya'an Tianlan New Material Technology Co., Ltd. (hereinafter referred to as "Ya'an Tianlan"). Chengdu Ruinang's subscribed capital contribution was RMB 49.50 million, with a paid-in capital contribution of RMB 19.47648 million. The acquisition price was RMB 19.47648 million. The fair value of Ya'an Tianlan's net assets attributable to the Company on the acquisition date was RMB 13,236,649.52, resulting in goodwill of RMB 6,239,830.48 from this business combination.
Upon self-inspection and prudent verification, the Company's controlling shareholder and one of its actual controllers, Wang Ruiqing, can control Chengdu Ruinang. In accordance with the "Shenzhen Stock Exchange GEM Stock Listing Rules," the Company has additionally recognized Chengdu Ruinang as a related party.
Therefore, the Company's acquisition of 55% equity in Ya'an Tianlan in 2023 constituted a business combination under common control. The Company needs to correct the goodwill of RMB 6,239,830.48 and correspondingly adjust the main financial data for 2023, 2024, and 2025.