The Shenzhen Stock Exchange issued an annual report inquiry letter to *ST Changfang on May 29. On February 6, 2023, the company disclosed that the holding subsidiary Changfang Group Kang Mingsheng (Shenzhen) Technology Co., Ltd. (hereinafter referred to as “Kang Mingsheng”) allegedly refused and prevented the securities regulatory agency and its staff from carrying out supervisory and inspection duties in accordance with the law, and that the China Securities Regulatory Commission decided to file a case against Kang Mingsheng. On April 12, 2024, the company disclosed that the China Securities Regulatory Commission decided to file a case against the company due to the company's suspected illegal disclosure of information. The company was asked to explain in detail the progress of relevant matters and their impact on the company after the investigation of the company and its subsidiaries. Clarify whether the matters investigated by the company and its subsidiaries are likely to have an impact on the company's current and prior financial statements. In conjunction with responses to the above questions, etc., clearly explain the impact of the investigation of the company and its subsidiaries on the effectiveness of the company's internal control up to the end of the reporting period.