Linewell Software changes the accounting method for its equity investee, expecting to increase revenue by approximately 5 million

On September 19, 2025, the fifth board of directors of Linewell Software reviewed and approved the proposal to change the accounting method for its affiliated company, Sifang Weiye. From 2018 to 2019, Linewell Software invested a total of 130 million yuan to acquire an 11.8993% equity stake in Sifang Weiye, which was originally accounted for using the equity method. On September 10, Sifang Weiye restructured its board of directors, and Linewell Software no longer holds a board seat, which has no significant impact on it. Starting from September 10, the accounting method will change to fair value measurement, with changes recognized in other comprehensive income as financial assets. Preliminary estimates indicate that this change is expected to increase current investment income by approximately 5 million yuan. The board of directors, supervisory board, and audit committee all agreed to the change, while also noting the uncertainty and risk associated with the operations of the affiliated company