ST Renzi: The company and relevant responsible persons received the "Administrative Penalty Decision".

ST Renzi announced on the evening of July 20 that on July 18, the company and related responsible persons received the "Administrative Penalty Decision" issued by the China Securities Regulatory Commission. After investigation, the company's subsidiary Beijing Yahong Century Technology Development Co., Ltd. arranged to sign some non-commercial purchase and sales contracts as a fund channel during the project construction process, resulting in a total of 112 million yuan in inflated operating income and 73.2852 million yuan in inflated profit from 2020 to the first half of 2022. The China Securities Regulatory Commission decided to order Renzi to make corrections, issue a warning, impose a fine of 5 million yuan, and impose a total fine of 12 million yuan on four related responsible persons. According to the situation identified in the "Administrative Penalty Decision", the company does not touch upon the risk warning of delisting. As of now, the company's various production and business activities are proceeding normally and orderly. The matters mentioned in the "Administrative Penalty Decision" have been rectified. The company will apply to the Shenzhen Stock Exchange for the timely removal of other risk warnings on the company's stock twelve months after the date when the China Securities Regulatory Commission issues the Administrative Penalty Decision.