Weilong Group: Response to the regulatory letter from the Shanghai Stock Exchange regarding performance forecasts.

Weilong Corporation announced that the Shanghai Stock Exchange issued a regulatory work letter regarding the company's performance forecast, and the company replied to the relevant questions. The expected revenue for 2025 is 341 million to 391 million yuan, with both pre- and post-deduction net profits being negative. Sales are mainly through distributors and other channels, with 495 registered distributors in 2025, adding 52 new ones, and no large sales to new customers. The fourth quarter saw a significant increase in revenue compared to the previous quarter due to the peak consumption season of the Spring Festival. Sales confirmation was compliant, with good collection of payments except for one. In addition, it is estimated that around 63 million yuan will be provisioned for asset impairment in 2025, including impairment of original wine and grapeyard scrapping, in accordance with accounting standards. The changes in gross profit margin in each quarter are reasonable and consistent with the trends of comparable companies.