Shenzhen Guohua Network Security Technology disclosed its reply to the Shareholder Inquiry and Suggestion Letter from China Securities Regulatory Commission Small and Medium-sized Investor Service Center. In the trade of acquiring Zhiyou Network Security, Peng Ying, Guo Xunping, and Zhengzhou Zhonghe did not fulfill their compensation obligations in a timely manner. The company sent an Urgent Letter on the implementation of the Accounts Receivable Compensation and the Share Compensation to the above-mentioned three parties. As of the date of the announcement, the company has not yet received the accounts receivable assessment compensation from Peng Ying, Guo Xunping, and Zhengzhou Zhonghe that should be paid to the company. In addition, the company shares held by Peng Ying, Guo Xunping, and Zhengzhou Zhonghe are still in a pledged or frozen state. The shares that are not restricted are not sufficient to fulfill the obligation of share compensation, and the share compensation has not yet been implemented.