CIRC (01763) has announced that, as determined by the relevant authorities on December 31, 2025, its non-wholly-owned subsidiary, Shenzhen Zhonghe Haidewei Biotechnology Co., Ltd. (Haidewei), recently paid a total of RMB 271 million, which included RMB 188 million in back taxes for corporate income tax and value-added tax for the period from January 1, 2021, to December 31, 2024, plus late payment fees. This matter primarily pertained to Haidewei's sales expenses and abnormal inventory losses during the aforementioned period and does not involve administrative penalties. As of the date of this announcement, Haidewei has completed the payment of these taxes.

The company anticipates that this tax-related issue will impact the profit attributable to equity shareholders for the 2025 financial year by approximately RMB 130 million. However, the precise financial impact associated with this settlement will be subject to the review and audit findings of the company's independent auditor. Furthermore, the company has stated that it attaches great importance to this matter and is committed to further enhancing its management capabilities to effectively safeguard the interests of the company and its shareholders.