Starnet Communications: Regulatory Letter Received Due to Reporting Error in Investment Income

Announcement of Xingwang Yuda: In the third quarter report of 2025, the fair value change of 4.39 billion yuan in joint venture Xinghua Zhilian will be included in investment income according to the equity ratio, and incorrectly classified as regular profit and loss, leading to an overstatement of 1.13 billion yuan in net profit attributable to the parent company. After correction, the non-recurring net profit attributable to the parent company was adjusted from 52.8729 million yuan to -60.0428 million yuan, and other non-recurring profit and loss items were significantly increased from 1.285 million yuan to 1.14 billion yuan, reflecting a serious deviation from accounting standards as originally disclosed. The Shenzhen Stock Exchange has issued a regulatory letter, requiring the company and all directors and officers to learn lessons deeply, strictly comply with the Securities Law, Company Law, and listing rules, effectively improve the quality of information disclosure, and prevent similar errors from happening again. This incident exposes significant deficiencies in the company's financial accounting and internal control in terms of disclosure.