Fujian Xingwang Ruijie Communications Co., Ltd. Announcement on the Provision of Asset Impairment Reserves for 2025

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Stock Code: 002396 Stock Abbreviation: StarNet Ruijie Announcement No.: Lin 2026-09

Fujian StarNet Ruijie Communication Co., Ltd.

Announcement on the Provision for Asset Impairment in 2025

The company and all members of the Board of Directors guarantee that the content of the announcement is true, accurate, and complete, and there are no false records, misleading statements, or significant omissions.

Fujian StarNet Ruijie Communication Co., Ltd. (hereinafter referred to as “the Company”) held the 19th meeting of the 7th Board of Directors on March 26, 2026, and reviewed and approved the “Proposal on the Provision for Asset Impairment in 2025”. In order to accurately reflect the Company’s financial position and operating results for 2025, in accordance with the relevant provisions of the “Accounting Standards for Business Enterprises”, the companies within the scope of the consolidated financial statements conducted impairment testing on their assets and made corresponding provisions for assets showing signs of impairment. The specific situation is as follows:

I. Overview of Asset Impairment Provision for the Current Period

In accordance with the “Accounting Standards for Business Enterprises”, “Self-Discipline Regulatory Guidelines No. 1 for Listed Companies on the Shenzhen Stock Exchange - Standard Operation of Main Board Listed Companies”, “Shenzhen Stock Exchange Stock Listing Rules”, and the Company’s relevant accounting policies, to more accurately and faithfully reflect the asset status and operating results of the Company as of December 31, 2025, the Company and its subsidiaries conducted a comprehensive inspection of various assets, including inventories, notes receivable, accounts receivable, other receivables, contract assets, long-term receivables, fixed assets, investment properties, intangible assets, long-term equity investments, goodwill, and other non-current assets, and based on this inspection, the Company made provisions for impairment on the relevant assets that showed signs of impairment according to the principle of prudence.

After comprehensively inspecting the various assets as of the end of 2025 and conducting impairment tests, the Company made a total impairment provision of 138,903,200 yuan, detailed in the table below:

Unit: 10,000 yuan

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II. Impact of the Current Period’s Asset Impairment Provision on the Company

The asset impairment provision made in the current period enables the balances of various assets in the Company’s balance sheet to better reflect their fair status. The provision for asset impairment is directly included in the current profit and loss. After considering the impact of income tax and minority shareholders’ profit and loss, it will affect the net profit attributable to the listed company for 2025 by -75,573,600 yuan, accounting for 18.48% of the absolute value of the audited net profit attributable to the listed company for 2025.

III. Explanation of the Current Period’s Asset Impairment Provision

(A) Specific Situation of Credit Impairment Loss Provision

(1) Provision for asset impairment of financial assets:

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(2) Standards for recognizing and calculating provisions for asset impairment of financial assets

For notes receivable and accounts receivable, regardless of whether there is a significant financing component, the Company always measures its loss provision at an amount equivalent to the expected credit losses over the entire duration.

Apart from individually assessed credit risk notes receivable, the Company classifies notes receivable based on the credit risk characteristics of the acceptors into different portfolios and calculates expected credit losses on a portfolio basis. The basis for determining the portfolio is as follows:

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Apart from individually assessed credit risk accounts receivable, the Company classifies accounts receivable based on customer categories, aging, and other common risk characteristics into different portfolios and calculates expected credit losses on a portfolio basis. The basis for determining the portfolio is as follows:

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For accounts receivable classified as general customers, the Company refers to historical credit loss experience, combines current conditions, and forecasts future economic conditions to prepare a comparison table of accounts receivable aging and the expected credit loss rate over the entire duration to calculate expected credit losses. For accounts receivable classified as related party customers and other portfolios, the Company refers to historical credit loss experience, combines current conditions and forecasts of future economic conditions, and calculates expected credit losses based on default risk exposure and the expected credit loss rate over the entire duration.

For other receivables classified into portfolios and long-term receivables from installment sales, the Company measures impairment losses at amounts equivalent to the expected credit losses over the next 12 months or the entire duration, based on whether the credit risk of other receivables/long-term receivables has significantly increased since initial recognition.

Apart from individually assessed credit risk other receivables, the Company classifies other receivables based on the nature of the transaction counterparties and the nature of the amounts into different portfolios and calculates expected credit losses on a portfolio basis, with the basis for determining the portfolio as follows:

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Apart from individually assessed credit risk long-term receivables, the Company classifies long-term receivables from installment sales into different portfolios based on their credit risk characteristics:

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The Company separately conducts impairment tests for receivables, notes receivable, accounts receivable, other receivables, and long-term receivables with objective evidence of impairment and for other applicable individually assessed receivables (e.g., receivables in dispute or involved in litigation, arbitration; receivables that already show clear signs that the debtor is likely unable to fulfill repayment obligations, etc.), confirming expected credit losses and calculating individual impairment provisions.

(B) Specific Situation of Asset Impairment Loss Provision

(1) Specific situation of asset impairment loss provision:

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(2) Standards for recognizing and calculating inventory impairment provisions:

At the balance sheet date, inventories are measured at the lower of cost and net realizable value. For those with cost exceeding net realizable value, an inventory impairment provision is made, which is included in current profit and loss. If factors affecting the previous write-down of inventory value have disappeared, making the net realizable value of the inventory exceed its book value, the previously written-down amount will be restored within the amount of the original inventory impairment provision, and the amount reversed will be included in current profit and loss.

Net realizable value refers to the estimated selling price of the inventory in the ordinary course of business, less the estimated costs expected to be incurred to complete the inventory, estimated selling expenses, and related taxes. For finished goods, merchandise, and materials directly used for sale, the net realizable value is determined by the estimated selling price of the inventory minus estimated selling expenses and related taxes in the normal course of business; for materials that require processing, the net realizable value is determined by the estimated selling price of the finished products minus the estimated costs expected to be incurred to complete the inventory, estimated selling expenses, and related taxes in the normal course of business; for inventories held for the purpose of fulfilling sales contracts or service contracts, the net realizable value is calculated based on the contract price. If the quantity of inventory held exceeds the quantity ordered in the sales contract, the net realizable value of the excess inventory is calculated based on the general selling price.

The Company makes inventory impairment provisions for each individual inventory item. However, if certain inventories are related to product series produced and sold in the same area, have the same or similar final use or purpose, and are difficult to measure separately from other items, the inventory impairment provision is made on a combined basis. For numerous items with low unit prices, the Company makes inventory impairment provisions based on inventory categories.

(3) Standards for recognizing and calculating contract asset bad debt provisions:

The bad debt provision for contract assets refers to the recognition standards and calculation methods for accounts receivable bad debt provisions.

(4) Provision method for long-term equity investment impairment:

The Company assesses whether there are signs of impairment for long-term equity investments held at the balance sheet date and conducts impairment tests on those with signs of impairment. If the impairment test results indicate that the recoverable amount of the asset is lower than its book value, a provision for impairment is made for the difference, which is included in impairment losses.

(5) Provision methods for impairment of investment properties, fixed assets, and other non-current assets:

The Company assesses whether there are signs of impairment for long-term assets such as investment properties (measured using the cost model), fixed assets, and other non-current assets at the balance sheet date. If there are signs of impairment, the Company will conduct impairment tests. The Company’s valuation analysis will refer to the valuation amounts from assessment agencies or check the average price of similar assets nearby. When the recoverable amount of the asset is lower than its book value, the Company will write down the book value to the recoverable amount, and the written-down amount will be included in current profit and loss, along with a corresponding provision for asset impairment.

Once recognized, long-term asset impairment losses cannot be reversed in subsequent accounting periods.

IV. Opinion of the Audit Committee on the Provision for Asset Impairment

The 15th meeting of the Audit Committee of the 7th Board of Directors was held on March 26, 2026. The meeting approved the “Announcement on the Provision for Asset Impairment in 2025” with a voting result of 3 votes in favor, 0 votes against, and 0 abstentions. The Audit Committee believes that the provision for asset impairment made this time complies with the relevant provisions of the “Accounting Standards for Business Enterprises” and the Company’s accounting policies, fairly reflecting the Company’s financial status and operating results, without harming the interests of the Company and all shareholders. It agrees to submit the proposal for board review.

V. Opinion of the Board of Directors on the Provision for Asset Impairment

The Board of Directors believes that the provision for asset impairment made for the year 2025 follows and complies with the provisions of the “Accounting Standards for Business Enterprises” and the Company’s relevant systems, reflects the principle of accounting prudence, has sufficient basis, and fairly reflects the Company’s consolidated financial status as of December 31, 2025, as well as the consolidated operating results for the year 2025, making the Company’s accounting information regarding asset value more true and reliable, without manipulating profits through the provision for asset impairment. The Company’s provision for asset impairment this time is in line with the overall interests of the Company and its shareholders, and does not harm the interests of shareholders, especially small and medium shareholders. The Board of Directors agrees to the Company’s provision for asset impairment this time.

VI. Documents for Reference

(I) Resolution of the 19th meeting of the 7th Board of Directors;

(II) Review opinion of the 15th meeting of the Audit Committee of the 7th Board of Directors.

This announcement is hereby made.

Fujian StarNet Ruijie Communication Co., Ltd.

Board of Directors

March 28, 2026

Stock Code: 002396 Stock Abbreviation: StarNet Ruijie Announcement No.: Lin 2026-10

Fujian StarNet Ruijie Communication Co., Ltd.

Announcement on the Foreign Exchange Derivative Hedging Transaction Business of the Controlling Subsidiary

The company and all members of the Board of Directors guarantee that the content of the announcement is true, accurate, and complete, and there are no false records, misleading statements, or significant omissions.

Important Content Reminder:

1. Purpose of the Transaction: Fujian StarNet Ruijie Communication Co., Ltd. (hereinafter referred to as “the Company” or “StarNet Ruijie”) controlling subsidiary Ruijie Networks Co., Ltd. (hereinafter referred to as “Ruijie Networks” or “the Controlling Subsidiary”) intends to conduct foreign exchange derivative trading business to enhance its ability to respond to foreign exchange market risks, avoid and prevent the adverse effects of foreign exchange rate fluctuations on the Company’s operating performance, and strengthen financial stability.

2. Types, Tools, and Amount of Transactions: The foreign exchange derivative trading business that Ruijie Networks intends to conduct includes but is not limited to spot trading, forward trading, swap trading, option trading, and other foreign exchange derivative products; the main foreign currencies are USD, JPY, etc.; the maximum value of foreign exchange derivative contracts held by Ruijie Networks on any trading day will not exceed 400 million yuan (or equivalent foreign currency), and the trading margin and premiums used will not exceed 10% of the maximum contract value held on any trading day.

3. Trading Venue: Banks and other financial institutions with legal operating qualifications for foreign exchange derivative trading.

4. Review Procedures Completed: This matter has been approved by the 19th meeting of the 7th Board of Directors.

5. Risk Reminder: Ruijie Networks’ foreign exchange derivative trading will adhere to the principles of legality, prudence, safety, and effectiveness, and will not engage in speculative or arbitrage trading operations. However, the earnings from the foreign exchange derivative business are affected by exchange rate and interest rate fluctuations, and there are risks such as market risk, liquidity risk, internal control risk, and performance risk. Investors are advised to pay attention to investment risks.

I. Overview of the Transaction

(A) Purpose of the Transaction

In recent years, the Company’s overseas business has been continuously expanding, primarily using foreign currencies such as USD and JPY for settlement. In order to enhance the Company’s ability to respond to foreign exchange market risks and avoid and prevent adverse effects of foreign exchange rate fluctuations on Ruijie Networks’ operating performance and to strengthen financial stability, the Company’s controlling subsidiary Ruijie Networks and its subsidiaries plan to conduct foreign exchange derivative trading business. This transaction aims for hedging purposes only and does not involve speculation and arbitrage trading.

(B) Transaction Amount

The Company estimates that based on asset scale and business needs, the maximum value of foreign exchange derivative contracts held by Ruijie Networks and its subsidiaries on any trading day will not exceed 400 million yuan (or equivalent foreign currency), and the trading margin and premiums used for foreign exchange derivative trading will not exceed 10% of the maximum contract value held on any trading day (including the value of collateral provided for trading, the expected occupied credit limits from financial institutions, and the reserved margins for emergency measures, etc.). The above limits can be recycled within the authorization period, and the value of contracts held at any point within the authorization period (including amounts related to the profits from the aforementioned trades) must not exceed the approved limits.

© Transaction Method

1. Types of Transactions: The foreign exchange derivative hedging trading varieties that Ruijie Networks and its subsidiaries plan to conduct include but are not limited to spot trading, forward trading, swap trading, option trading, and other foreign exchange derivative products. These transactions will hedge against the foreign exchange exposure affected by foreign exchange rate fluctuations, locking in future exchange rates and reducing the risk of exchange rate fluctuations.

2. Currencies Involved in Transactions: The foreign exchange hedging business that Ruijie Networks and its subsidiaries plan to conduct is limited to the same currencies as the main settlement foreign currencies used in actual business operations, mainly USD, JPY, and other foreign currencies.

3. Counterparties: Ruijie Networks and its subsidiaries plan to cooperate with banks and other financial institutions that have legal operating qualifications for foreign exchange derivative trading to conduct foreign exchange hedging business. The counterparties for this foreign exchange hedging business do not have any related party relationship with the Company.

(D) Duration of Transactions

The authorization period for the transaction limit is valid for 12 months from the date this proposal is approved by the Board of Directors.

(E) Source of Funds

The source of funds is the self-owned funds of Ruijie Networks and its subsidiaries, and does not involve the direct or indirect use of raised funds or bank credit funds.

II. Review Procedures

(A) This matter has been approved by the 19th meeting of the 7th Board of Directors held on March 26, 2026. This transaction is within the approval authority of the Company’s Board of Directors and does not need to be submitted for shareholder meeting review.

(B) According to the provisions of the “Shenzhen Stock Exchange Stock Listing Rules,” this transaction does not constitute a related party transaction.

III. Risk Analysis and Risk Control Measures for the Transaction

(A) Risk Analysis

The Company’s foreign exchange derivative hedging trading business adheres to the principles of legality, prudence, safety, and effectiveness. All foreign exchange hedging business is based on normal business operations and aims to avoid and prevent exchange rate risks, and does not engage in speculative foreign exchange trading. However, conducting foreign exchange hedging business still carries certain risks, including:

1. Market Risk: Due to the complex factors affecting exchange rate movements in the foreign exchange market, there is significant uncertainty. If future exchange rate movements deviate from the agreed exchange rates in the Company’s foreign exchange hedging contracts, it will result in trading gains or losses.

2. Liquidity Risk: The foreign exchange derivative trading will be based on its foreign exchange revenue and expenditure budget, matching it with actual business to ensure sufficient funds for settlement at the time of delivery. The duration of the trades will be set according to the Company’s actual business situation and budget, resulting in relatively low overall liquidity risk.

3. Internal Control Risk: The foreign exchange hedging business has strong professionalism and complexity, and may incur operational risks due to employee errors, system failures, etc.

4. Performance Risk: There is a risk of default if contracts for foreign exchange hedging cannot be fulfilled upon expiration. The Company will choose banks with good credit and long-term business relationships with the Company as counterparties, reducing performance risk.

5. Legal Risk: Changes in relevant laws and regulations or violations of relevant laws and regulations by counterparties may result in contracts being unable to be executed normally, leading to losses for the Company.

(B) Risk Control Measures

1. The Company will strictly comply with the relevant laws and regulations, departmental rules, and normative documents concerning foreign exchange derivative trading business, ensuring decision-making, implementation, and risk management for foreign exchange derivative investments.

2. The Company has established the “Foreign Exchange Derivative Trading Business Management System,” which clearly stipulates the operating principles, approval authority, management and operational processes, risk management, information isolation, and information disclosure for foreign exchange derivative trading business. The Company will strictly operate in accordance with the provisions of the “Foreign Exchange Derivative Trading Business Management System” to ensure effective implementation of the system and control business risks.

3. The Company will strengthen research and analysis on exchange rates and interest rates, monitor changes in domestic and foreign market conditions in real-time, and timely adjust foreign exchange derivative trading plans to minimize foreign exchange losses.

4. The Company will thoroughly understand the operational qualifications, implementation teams, involved trading personnel, and authorization systems of financial institutions handling foreign exchange derivatives, carefully selecting banks and financial institutions with good credit and established long-term business relationships with the Company. Professional institutions may be hired to analyze and compare the trading models and counterparties of foreign exchange derivatives if necessary.

5. The Company’s audit department will supervise and inspect compliance with decision-making, management, execution, and other work related to foreign exchange derivative trading.

IV. Related Accounting Treatment for Transactions

The relevant accounting policies and accounting principles for Ruijie Networks and its subsidiaries to conduct foreign exchange derivative hedging trading business will strictly follow the Ministry of Finance’s “Accounting Standards for Business Enterprises No. 22 - Financial Instruments Recognition and Measurement,” “Accounting Standards for Business Enterprises No. 37 - Financial Instruments Presentation,” and “Accounting Standards for Business Enterprises No. 39 - Fair Value Measurement,” and will conduct corresponding accounting treatment for the proposed foreign exchange derivative hedging trading business, reflecting it in the relevant items of the balance sheet and income statement. The final accounting treatment will be subject to the results confirmed by the Company’s annual auditing agency.

V. Documents for Reference

(I) Resolution of the 19th meeting of the 7th Board of Directors;

(II) Feasibility Analysis Report on the Foreign Exchange Derivative Hedging Trading Business of Controlling Subsidiary Ruijie Networks Co., Ltd.

This announcement is hereby made.

Fujian StarNet Ruijie Communication Co., Ltd.

Board of Directors

March 28, 2026

Stock Code: 002396 Stock Abbreviation: StarNet Ruijie Announcement No.: Lin 2026-11

Fujian StarNet Ruijie Communication Co., Ltd.

Announcement on the Online Performance Briefing for the Year 2025

The company and all members of the Board of Directors guarantee that the content of the announcement is true, accurate, and complete, and there are no false records, misleading statements, or significant omissions.

Fujian StarNet Ruijie Communication Co., Ltd. (hereinafter referred to as “the Company”) will hold an online performance briefing for the year 2025 on April 13, 2026 (Monday) from 15:00 to 16:00 on the Allview Network. This annual performance briefing will be conducted remotely, and investors can log in to the Allview Network “Investor Relations Interactive Platform” (

The attendees of this online performance briefing will include: Mr. Ruan Jiayong, Chairman of the Company; Mr. Li Huaiyu, Vice President and Secretary of the Board of Directors; Ms. Li Yinyan, Financial Officer; Mr. Xie Bangsheng, Independent Director.

To fully respect investors and enhance the relevance of communication, the Company is now publicly soliciting questions from investors in advance for the 2025 annual performance briefing, widely listening to investors’ opinions and suggestions. Investors can visit before 15:00 on April 10, 2026 (Friday)

We welcome all investors to actively participate in this online briefing.

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(QR code for the question solicitation topic page)

This announcement is hereby made.

Fujian StarNet Ruijie Communication Co., Ltd.

Board of Directors

March 28, 2026

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