*ST Jiuding Under Investigation by CSRC for Suspected Information Disclosure Violations

On September 18, Kunwu Jiuding Investment Holdings Co., Ltd. (abbreviated as *ST Jiuding) stated that all business activities are currently proceeding normally. During the period of the case investigation, the company will actively cooperate with the China Securities Regulatory Commission (CSRC) investigation and strictly fulfill its information disclosure obligations in accordance with relevant laws, regulations, and regulatory requirements.

Accounting Errors Identified in "Zijin City" Project

Previously, *ST Jiuding disclosed that during an in-depth study and re-evaluation of the monetization plan for the commercial area of the "Zijin City" project, accounting errors were identified regarding certain assets of the company. The errors mainly involved two aspects:

• Inventory impairment: Some inventory under the "Zijin City" project showed signs of impairment at the end of 2023, but sufficient identification and provision for inventory write-downs were not made at that time. Following a reassessment, an additional inventory write-down provision of RMB 169 million was recorded for fiscal year 2023, and the excess inventory write-down provision of RMB 177 million previously recorded for fiscal year 2024 was correspondingly reduced.

• Investment property valuation: Investment properties held by *ST Jiuding are measured using the fair value model. The original fair value change loss was RMB 1 million for fiscal year 2023 and RMB 69 million for fiscal year 2024. After reassessment, it was determined that the fair value of these investment properties had decreased compared to the original valuation at the end of 2023, but this decrease was not fully reflected at the time. Consequently, the fair value change loss on investment properties was increased by RMB 8 million for fiscal year 2023, and the fair value change loss for fiscal year 2024 was correspondingly reduced by RMB 1 million.

Retrospective Adjustments to Financial Statements

On April 29, 2026, Jiuding Investment disclosed the "Special Explanation Regarding Corrections of Prior Period Accounting Errors," making retrospective adjustments to the financial statements for fiscal years 2023 and 2024, while also adjusting the first quarterly report, semi-annual report, and third quarterly report for 2025.

Key adjustments include:

• 2023 net profit: Changed from a profit of RMB 15.3451 million before adjustment to a loss of RMB 118 million after adjustment, shifting from profitability to loss.
• 2024 net profit: Narrowed from a loss of RMB 268 million before adjustment to a loss of RMB 135 million after adjustment.

Prior Regulatory Violation

This is not the first time ST Jiuding has crossed regulatory red lines this year. On June 3, 2026, the Shanghai Stock Exchange (SSE) issued a disciplinary decision, publicly condemning ST Jiuding, then-Chairman Wang Liang, then-General Manager Wang Xin, and then-Chief Financial Officer and Board Secretary Yi Lingjie.

Investigation revealed that when the company disclosed its preliminary performance forecast for 2025 on January 31, 2026, it estimated annual operating revenue between RMB 320 million and RMB 350 million. However, in a correction announcement on April 27, the estimated revenue was revised downward to between RMB 270 million and RMB 290 million, only two trading days before the annual report disclosure.

The SSE pointed out that given the negative net profit, whether operating revenue fell below RMB 300 million directly related to the implementation of delisting risk warnings. The company's performance forecast disclosure was inaccurate, failed to provide risk warnings regarding relevant factors, and did not adequately alert the market to the risk of triggering delisting risk warnings.

Financial Performance and Delisting Risk

*ST Jiuding has faced significant pressure in recent years. From 2023 to 2025, the net profit attributable to shareholders of the parent company was:

| Year | Net Profit Attributable to Shareholders | |------|----------------------------------------| | 2023 | -RMB 118 million | | 2024 | -RMB 135 million | | 2025 | -RMB 358 million |

This marks three consecutive years of losses with widening deficits.

In the first half of 2026, the company achieved operating revenue of RMB 59.8901 million, a year-on-year decrease of 25.48%. The net loss attributable to shareholders of the parent company was RMB 88.1507 million, representing a year-on-year expansion of the loss margin by 85.39%.

Due to the fact that the lower of the audited total profit, net profit, or net profit after deducting non-recurring gains and losses for fiscal year 2025 was negative, and the operating revenue after deducting income unrelated to the main business and income lacking commercial substance was less than RMB 300 million, the Shanghai Stock Exchange implemented a delisting risk warning on the company's stock trading. Starting April 30, 2026, the stock abbreviation was changed from "Jiuding Investment" to "*ST Jiuding."

Business Overview

Publicly available information shows that *ST Jiuding's main business consists of two major segments: traditional business and new business. The traditional business segment includes private equity investment management, real estate development, and robotics.

(Source: Economic Reference News)