An announcement has been issued regarding a tax matter. A subsidiary of CHINA LIT (HKEX: 00772) conducted a self-review of tax-related risks associated with its Xinjiang Horgos subsidiary following a notice from the tax authority. After the self-review and communication with the competent tax authority, it was confirmed that the subsidiary needed to pay approximately RMB 300 million in back taxes and late payment surcharges for corporate income tax from 2020 to 2022. This matter does not involve administrative penalties.

The company has taken this matter seriously. As of the date of the announcement, the subsidiary has completed the payment of these taxes. The payment will be recorded in the company's profit and loss for 2026 and is expected to reduce profit attributable to equity holders by approximately RMB 300 million.

The company will conduct the corresponding accounting treatment for this matter in accordance with relevant accounting standards and the actual situation. The final accounting treatment and impact amount will be subject to confirmation by the company's independent auditor. This matter is not expected to have a significant impact on the company's normal operations. Investors are advised to be mindful of investment risks.