Wanfang Urban Investment Development Co., Ltd. Second Risk Warning Announcement Regarding the Possible Delisting of the Company's Stock Due to Market Value

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Stock Code: 000638 Stock Name: *ST Wanfang (Rights Protection) Announcement No.: 2026-042

Wanfang Urban Investment Development Co., Ltd.

Regarding the Company’s Stock Possibly Being Delisted Due to Market Value - Second Risk Warning Announcement

The company and all members of its board of directors guarantee that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.

Special Reminder:

1. As of March 27, 2026, the company’s stock closing total market value has been below 500 million yuan for ten consecutive trading days. According to Article 9.2.1 of the “Stock Listing Rules,” if the company’s stock closing total market value is below 500 million yuan for twenty consecutive trading days, the company’s stock will be delisted by the Shenzhen Stock Exchange due to triggering mandatory delisting conditions.

2. Stocks that are delisted due to triggering mandatory delisting conditions will not enter the delisting adjustment period. Investors are advised to pay attention to investment risks.

I. Reasons for Possible Delisting of the Company’s Stock

According to Article 9.2.1 of the “Shenzhen Stock Exchange Stock Listing Rules” (hereinafter referred to as the “Listing Rules”), if the company’s stock closing total market value is below 500 million yuan for twenty consecutive trading days, the company’s stock will be delisted from trading on the Shenzhen Stock Exchange (hereinafter referred to as “SZSE”) due to triggering mandatory delisting conditions. According to Article 9.6.1 of the “Listing Rules,” stocks that are delisted due to triggering mandatory delisting conditions will not enter the delisting adjustment period.

On March 16, 2026, the closing price of the stock of Wanfang Urban Investment Development Co., Ltd. (hereinafter referred to as “the Company”) was 1.56 yuan/share, with a total market value of 486 million yuan, which first triggered the condition of total market value being below 500 million yuan. As of March 27, 2026, the company’s stock closing total market value has been below 500 million yuan for ten consecutive trading days, posing a risk of delisting due to total market value being below 500 million yuan.

II. Disclosure of Delisting Risk Warning Announcement

According to Article 9.2.3 of the “Listing Rules,” for companies issuing A-shares or both A and B shares on the SZSE, if the stock closing total market value is below 500 million yuan, the listed company must disclose a risk warning announcement for possible delisting of the company’s stock or depositary receipts before the next trading day. According to Article 9.2.4 of the “Listing Rules,” if the listed company experiences a closing total market value below 500 million yuan for ten consecutive trading days, it must disclose a risk warning announcement for possible delisting of the company’s stock before the next trading day, and then disclose once every trading day until the relevant situation is eliminated or the delisting situation occurs (whichever comes first).

On March 17, 2026, the company disclosed the “First Risk Warning Announcement Regarding the Possibility of Delisting Due to Market Value” (Announcement No.: 2026-036).

This announcement serves as the company’s second risk warning announcement regarding the possibility of delisting due to market value.

III. Risk Warning

1. The company has been subject to delisting risk warning since April 30, 2025, with the stock name changing from “Wanfang Development” to “*ST Wanfang,” while the stock code remains “000638,” and the daily price fluctuation limit for stock trading is 5%. For details, please refer to the “Announcement Regarding the Implementation of Delisting Risk Warning and Suspension of Trading for Company Stock” disclosed by the company on April 29, 2025 (2025-031).

2. The company expects to trigger financial delisting situations.

(1) The company expects that for the year 2025, the operating income after deducting non-recurring gains and losses will be less than 300 million yuan, and both the net profit before and after deducting non-recurring gains and losses will be negative, which may trigger financial delisting conditions. According to Article 9.3.12 of the “Listing Rules,” if a listed company triggers the conditions specified in the first paragraph of Article 9.3.1 and its stock trading is subject to delisting risk warning, and the audited total profit, net profit, and net profit after deducting non-recurring gains and losses for the following year are all negative and the operating income is less than 300 million yuan, the company’s stock will be delisted.

According to the “2025 Annual Performance Forecast” disclosed by the company on January 31, 2026 (Announcement No.: 2026-018), the expected range for major financial indicators for 2025 is: operating income of 200 million to 250 million yuan, operating income after deductions of 150 million to 200 million yuan; total profit of -55 million to -40 million yuan; net profit attributable to shareholders of the listed company of -50 million to -35 million yuan; net profit after deducting non-recurring gains and losses of -22 million to -15 million yuan. The company expects that the total profit, net profit attributable to shareholders of the listed company, and net profit after deducting non-recurring gains and losses for 2025 will all be negative, and both operating income and operating income after deductions will be below 300 million yuan. According to the “Listing Rules,” the company’s stock will be delisted due to triggering financial delisting conditions, and investors are advised to pay attention to investment risks.

On February 26, 2026, the company received an audit progress statement from Beijing Guofu Jiaying Certified Public Accountants (Special General Partnership) (hereinafter referred to as “Guofu Jiaying”) regarding the audit of the company’s 2025 annual report. As of the date of this audit progress statement, the audit work is still ongoing. Based on the relevant audit evidence obtained by Guofu Jiaying and the relevant explanations from the management, and compared with the “2025 Annual Performance Forecast,” Guofu Jiaying did not find any material inconsistencies.

For specific details, please refer to the announcements disclosed by the company on January 31, 2026, and February 27, 2026, in “China Securities Journal,” “Securities Times,” “Shanghai Securities Journal,” “Securities Daily,” and the Giant Tide Information Network.

(2) There is significant uncertainty regarding whether the matters involved in the company’s qualified opinion can be eliminated, which may trigger financial delisting situations. According to Article 9.3.12 of the “Listing Rules,” if a listed company triggers the conditions specified in the first paragraph of Article 9.3.1 and its stock trading is subject to delisting risk warning, and in the following year, the financial accounting report is issued with a qualified opinion, disclaimer of opinion, or adverse opinion audit report, the company’s stock will be delisted.

ZTE Huaguang Certified Public Accountants (Special General Partnership) issued a qualified opinion audit report with an emphasis of matter paragraph for the company’s 2024 financial statements (ZTE Huaguang Audit [2025] No. 207002), and the matter for which a qualified opinion audit report was issued is the uncertainty regarding the recoverability of the company’s investment in other equity instruments of Jilin Wanfang Baiao Biotechnology Co., Ltd.

As of the date of this announcement, the above uncertainty has not been eliminated, and there remains a risk of the company’s 2025 annual audit report being issued with a qualified opinion audit report. If the company receives a qualified opinion audit report for the 2025 annual report, according to the “Listing Rules,” the company’s stock will be delisted due to triggering financial delisting conditions, and investors are advised to pay attention to investment risks.

3. On July 25, 2025, the company received the “Notice of Filing from the China Securities Regulatory Commission” (hereinafter referred to as “CSRC”), as it was suspected of violating information disclosure laws and regulations, the CSRC decided to file a case against the company. During the investigation period, the company actively cooperated with the CSRC’s work and continuously monitored the progress of the above matters, strictly fulfilling its information disclosure obligations as required. As of the date of this announcement, the CSRC’s investigation is still ongoing, and the company has not yet received a conclusive opinion or decision regarding the above filing matters. If the CSRC subsequently imposes administrative penalties and the related findings trigger the mandatory delisting conditions specified in the “Listing Rules,” the company’s stock may be subject to major illegal mandatory delisting.

4. According to Article 9.3.6 of the “Listing Rules,” it states: “If a listed company triggers the conditions specified in the first paragraph of Article 9.3.1, and its stock trading is subject to delisting risk warning, it must disclose a risk warning announcement regarding the possibility of delisting within one month after the end of the accounting year in which the stock trading is subject to delisting risk warning, and disclose a risk warning announcement once every ten trading days from the first risk warning announcement until the annual report is disclosed.” The company has disclosed the “Announcement on 2025 Annual Performance Loss and Possible Delisting of Company Stock” (Announcement No.: 2026-010), “Second Risk Warning Announcement Regarding Possible Delisting of Company Stock” (Announcement No.: 2026-015), “Third Risk Warning Announcement Regarding Possible Delisting of Company Stock” (Announcement No.: 2026-024), “Fourth Risk Warning Announcement Regarding Possible Delisting of Company Stock” (Announcement No.: 2026-031), “Fifth Risk Warning Announcement Regarding Possible Delisting of Company Stock” (Announcement No.: 2026-033), “Sixth Risk Warning Announcement Regarding Possible Delisting of Company Stock” (Announcement No.: 2026-038), and “Seventh Risk Warning Announcement Regarding Possible Delisting of Company Stock” (Announcement No.: 2026-041) on January 14, 2026, January 28, February 10, March 4, March 7, March 20, and March 24, 2026, respectively.

5. The company solemnly reminds investors: “Securities Times,” “China Securities Journal,” “Shanghai Securities Journal,” “Securities Daily,” and the Giant Tide Information Network.

This announcement is hereby made.

Wanfang Urban Investment Development Co., Ltd.

Board of Directors

March 27, 2026

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