Lingbao Gold announced that the group expects to achieve a net profit of no less than RMB 250 million in the first quarter of 2026, maintaining relative stability compared to the same period in 2025. This net profit performance is primarily the result of the offsetting effects of two main factors. On the positive side, the group benefited from steadily advancing production and operations in Q1 2026, consistently implementing strict cost-reduction and efficiency-enhancement measures, and also gained from an increase in the price of its primary product, gold, compared to Q1 2025. Conversely, the group's Q1 2026 net profit was significantly offset by the accounting impact of an approximate RMB 260 million loss from the fair value change of convertible bonds and related financial expenses, including imputed interest, of approximately RMB 22.1 million. The board emphasizes that this item is a non-cash charge, arising solely from the application and adherence to relevant accounting standards, does not involve any cash outflow, and does not reflect the group's underlying core operational performance.