Confucius Films: The recent operating conditions are normal, and there have been no significant changes in the internal and external operating environment.

Confucius Film announced on July 16 that the company's stock trading price has deviated by more than 20% for two consecutive trading days, indicating abnormal fluctuations in stock trading. After verification, the company's recent operation is normal, and there have been no major changes in the internal and external operating environment. The company is expected to incur a loss of 120 million to 180 million yuan in the first half of 2026, compared to a profit of 536 million yuan in the same period last year, resulting in a shift from profit to loss. As of the date of this announcement, there is no need to revise the above performance forecast. This performance forecast is based on preliminary calculations by the company's financial department and has not been audited by an accounting firm. The specific financial data will be based on the company's 2026 semi-annual financial report, which will be disclosed on August 26, 2026.