【Shengyue-KY】Announcement by Subsidiary Jinjiang Chengchang Footwear Co., Ltd. on Land Use Rights Recovery by Jinjiang Municipal Government

1. Date of Event: June 15, 2026 2. Company Name: Jinjiang Chengchang Footwear Co., Ltd. 3. Relationship with Company (Parent or Subsidiary): Subsidiary 4. Mutual Shareholding Ratio: Not applicable 5. Reason for Occurrence: The Jinjiang Municipal Government has reclaimed three parcels of land use rights located in Lianyu Community, Qingyang Street, belonging to Jinjiang Chengchang Footwear Co., Ltd. 6. Response Measures: On January 20, 2026, the Jinjiang Municipal Government reclaimed three parcels of land use rights located in Lianyu Community, Qingyang Street, held by Jinjiang Chengchang Footwear Co., Ltd., and the municipal real estate registration center canceled the real estate ownership certificates. The consolidated company had already recognized a 100% impairment loss on these three land use rights as of December 31, 2025, amounting to 193,719 thousand yuan, and derecognized the assets in the first quarter of 2026. Compensation for the land use rights recovery will be determined through a contract to be signed with the government; as of March 31, 2026, no such contract has been finalized. The company will continue to communicate with local government authorities to clarify the details of the land recovery and related compensation arrangements. Subsequent actions will be taken based on evaluation results and relevant legal provisions, with timely disclosure of information to protect the interests of the company and its shareholders. 7. Other Matters to be Disclosed: None