Zongheng Corporation announcement: On June 13, Army Procurement Network released an announcement that the supply and logistics division of the network's cyberspace force has decided to ban Chengdu Zongheng Dapeng Technology Co., Ltd., a wholly-owned subsidiary of the company, for three years from participating in military material engineering service procurement activities starting from June 12, 2024, in accordance with relevant regulations on military supplier management. During the ban period, Ren Bin, the legal representative of the company, or other enterprises controlled or managed by him are prohibited from participating in military procurement activities within the scope mentioned above. Li Qiong, the bidding representative, is prohibited from acting as an agent for other suppliers to participate in the above-mentioned military procurement activities within the scope mentioned above. According to preliminary statistics, the operating income generated by the company's domestic sales of military materials and equipment in 2023 accounted for about 7.2% of its revenue. Therefore, it is currently estimated that this violation decision will not have a significant impact on the company's production and operation.