Yunnan Yuntianhua's 2025 profit to be hit by subsidiary's tax adjustment

Yunnan Yuntianhua Co., Ltd. announced that its wholly-owned subsidiary, Yunnan Phosphorite Group Co., Ltd., conducted a self-inspection of tax matters. This inspection revealed that for the period from 2022 to October 2025, the subsidiary needs to pay supplementary resource tax of 29,342.17 million yuan and a late payment penalty of 9,264.55 million yuan, totaling 38,606.72 million yuan.

According to accounting standards, these supplementary tax payments and late fees are not considered prior period accounting errors and do not require retroactive adjustment. The total amount will be recorded as an expense in the company's current period.

Consequently, these adjustments are expected to reduce Yunnan Yuntianhua's net profit attributable to shareholders by 34,205.40 million yuan for the 2025 fiscal year. The final impact will be based on the audited financial statements for the 2025 fiscal year. The company emphasizes that this supplementary tax payment will not affect its normal operations and advises investors to be aware of investment risks.