Bai Ze Shenzhou: Domestic subsidiaries will pay back taxes and penalties totaling 446 million yuan.

Baize Shenzhou announced that a domestic wholly-owned subsidiary of the company recently received a notice from the local tax authority, requiring adjustments to previous tax declarations. The company has confirmed with the tax authority and will pay approximately 446 million yuan in back taxes and penalties, with no administrative penalties involved. This matter is not considered an accounting error, and there will be no retroactive adjustment to previous financial data. The repayment is expected to be recorded in the 2026 current year income statement and is not expected to have a significant adverse impact on the company's finances and operations.