Surfilter: The company and relevant responsible persons received the "Administrative Penalty Decision"

Surfilter announced on the evening of July 20 that on July 18, the company and relevant responsible persons received the "Administrative Penalty Decision" issued by the China Securities Regulatory Commission (CSRC). It was found that the company's subsidiary, Beijing Yahon Century Technology Development Co., Ltd., arranged to sign some purchase and sales contracts without commercial substance as a funding channel during the project construction process, resulting in the company artificially inflating its operating income by a total of 112 million yuan and total profit by 7.32852 million yuan from 2020 to the first half of 2022. The CSRC decided to order Surfilter to make corrections, issue a warning, and impose a fine of 5 million yuan, along with a total fine of 12 million yuan imposed on four relevant responsible persons. According to the circumstances identified in the "Administrative Penalty Decision," the company does not trigger the delisting risk warning situation. As of now, the company's various production and operational activities are being carried out normally and orderly. All matters mentioned in the "Administrative Penalty Decision" have been rectified. The company will timely apply to the Shenzhen Stock Exchange for the removal of other risk warnings on its stock 12 months after the CSRC issues the administrative penalty decision