NUOBIKAN (02635) Issues Statement: Only Routine Business with Hengxin Dongfang, Unaware of Related Incident

Stock News
May 11

NUOBIKAN (02635) has announced that its board of directors recently noted that one of the company's suppliers, Hengxin Dongfang Cultural Co., Ltd. (a company incorporated in China with shares listed on the Shenzhen Stock Exchange's ChiNext board, stock code: 300081), received a "Decision on Administrative Penalty" dated April 30, 2026, issued by the Beijing Regulatory Bureau of the China Securities Regulatory Commission. The "Decision on Administrative Penalty" contained content related to the company, stating that in 2022, Hengxin Dongfang conducted computing power system integration and technical service business with the company, selling software to the company (past transactions). When engaging in this business, Hengxin Dongfang did not have control over the goods and, while aware of the transaction model, still recognized revenue using the gross method. This did not comply with the provisions of Article 34 of "Accounting Standards for Business Enterprises No. 14 — Revenue" (Finance [2017] No. 22), resulting in false records in the 2022 annual report disclosed by Hengxin Dongfang. Specifically, 2022 revenue was inflated by 181.6114 million yuan, accounting for 37.12% of the disclosed operating revenue for the period (the related incident). Regarding this incident, the board hereby clarifies and emphasizes: 1. The company only had routine business dealings with Hengxin Dongfang and was unaware of the related incident; 2. The past transactions with Hengxin Dongfang were genuine and valid, and have been properly accounted for according to the company's accounting procedures and policies; and 3. After careful inquiry, the board confirms that the recent fluctuations in the company's share price are unrelated to the incident, and the company has no inside information requiring disclosure under Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

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