Wuhan Mingcheng Culture and Sports Group Co., Ltd. Announcement Regarding Receipt of the Administrative Penalty Decision Letter from the Hubei Regulatory Bureau of the China Securities Regulatory Commission

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Stock code: 600136 Stock abbreviation: ST Mingcheng Announcement No.: Lin 2026-006

Wuhan Mingcheng Culture Sports Group Co., Ltd.

Announcement on the receipt of the “Administrative Penalty Decision” issued by the Hubei Regulatory Bureau of the China Securities Regulatory Commission

The board of directors of the Company and all directors guarantee that the contents of this announcement contain no false records, misleading statements or material omissions, and assume legal responsibility for the truthfulness, accuracy and completeness of the contents.

Wuhan Mingcheng Culture Sports Group Co., Ltd. (hereinafter referred to as the “Company”) received on July 26, 2023 the “Notice of Filing for Case” issued by the China Securities Regulatory Commission (hereinafter referred to as the “CSRC”) (Case No.: Zhengjian Case Filing Zi 0052023008), because the Company is suspected of violations in information disclosure, and in accordance with the provisions of laws and regulations including the “Securities Law of the People’s Republic of China” and the “Administrative Penalties Law of the People’s Republic of China,” the CSRC decided to file a case against the Company. (For details, see the Company’s announcement, Announcement No.: Lin 2023-089)

On February 23, 2024, the Company received the “Preliminary Notice of Administrative Penalty” issued by the CSRC’s Hubei Regulatory Bureau [E Penalty Zi (2024) No. 1]. (For details, see the Company’s announcement, Announcement No.: Lin 2024-032).

On March 20, 2026, the Company received the “Administrative Penalty Decision” issued by the CSRC’s Hubei Regulatory Bureau ([2026] No. 4). Relevant matters are hereby announced as follows:

I. Main contents of the “Administrative Penalty Decision”

Parties involved: Wuhan Mingcheng Culture Sports Group Co., Ltd. (formerly Wuhan Contemporary Mingcheng Culture Sports Group Co., Ltd., hereinafter referred to as Mingcheng Culture and Sports or the Company), domicile: Wuchang District, Wuhan City, Hubei Province.

Yi Rentao, male, born January 1981, at the time served as Chairman of Mingcheng Culture and Sports, address: Wuchang District, Wuhan City, Hubei Province.

Li Zhenyu, female, born October 1979, at the time served as Vice General Manager and Chief Financial Officer of Mingcheng Culture and Sports, address: Wuchang District, Wuhan City, Hubei Province.

Gao Wei, female, born November 1986, at the time served as Vice General Manager and Secretary of the Board of Directors of Mingcheng Culture and Sports, address: Wuchang District, Wuhan City, Hubei Province.

Yu Lingxiao, male, born September 1968, at the time served as a director of Mingcheng Culture and Sports, address: Xuhui District, Shanghai.

Yan Aihua, male, born January 1964, at the time served as General Manager and a director of Mingcheng Culture and Sports, address: Chaoyang District, Beijing.

In accordance with the relevant provisions of the “Securities Law of the People’s Republic of China” (hereinafter referred to as the “Securities Law”), our bureau conducted a filing investigation into the illegal acts related to information disclosure by Mingcheng Culture and Sports, informed the parties of the facts, reasons, basis for the administrative penalty, and the rights the parties依法 enjoy in accordance with law. Upon the request of Li Zhenyu, Gao Wei and Yan Aihua, a hearing was held to hear the parties and their agents’ statements and defenses. The case has now been investigated and handled to completion.

After investigation, Mingcheng Culture and Sports has the following illegal facts:

I. Mingcheng Culture and Sports failed to disclose related-party guarantees in its 2020 annual report, resulting in a material omission in the 2020 annual report

(1) The Company provided guarantees for a loan from a related party, Contemporary Investment, to Hubei Cooperation and its subsidiaries

On January 21, 2020, Wuhan Contemporary Technology Investment Co., Ltd. (hereinafter referred to as “Contemporary Investment”) signed a “Loan Contract” with Hubei Cooperation YinTong Financial Leasing Co., Ltd. (hereinafter referred to as “Hubei Cooperation YinTong”). The loan contract stipulated that Hubei Cooperation YinTong would lend 400 million yuan to Contemporary Investment. Meanwhile, entities including Mingcheng Culture and Sports separately signed “Guarantee Contracts” with Hubei Cooperation YinTong to provide guarantees for the aforementioned loan.

On December 11, 2020, Contemporary Investment signed an “Amount Credit Granting Contract” with Hubei Cooperation Investment Group Co., Ltd. (hereinafter referred to as “Hubei Cooperation”) (stipulating the credit amount as 310 million yuan), and subsequently also signed a “Loan Contract” clarifying that the loan amount was 260 million yuan. Entities including Mingcheng Culture and Sports separately signed “Guarantee Contracts” with Hubei Cooperation to provide guarantees for the loan.

(2) The Company provided guarantees for a loan from Hubei Cooperation to a related party, Yushi Mining

In June 2019, Hubei Zhongjing Trading Co., Ltd. (hereinafter referred to as “Zhongjing Trading”) entered into a contract with Yushi Mining, stipulating that Zhongjing Trading would provide a loan of 1.2 billion yuan to Yushi Mining. Wuhan Contemporary Technology Industry Group Co., Ltd. (hereinafter referred to as “Contemporary Group”) provided an irrevocable shortfall top-up commitment for the above-mentioned loan, and Mingcheng Culture and Sports provided joint liability guarantees for Contemporary Group’s shortfall top-up commitment. In June 2020, as of the remaining 750 million yuan of the above-mentioned loan not yet repaid, Mingcheng Culture and Sports provided again joint liability guarantees for Contemporary Group’s shortfall top-up commitment.

(3) The Company provided full guarantees for the payment obligations of the related party, Newco Cayman, to the AFC

On November 26, 2020, the Company’s controlling subsidiary Super Sports Media Inc. (hereinafter referred to as “Newco Cayman”) signed relevant license agreements and ancillary agreements with the Asian Football Confederation (hereinafter referred to as the “AFC”). Under the agreements, Newco Cayman obtained the copyright and sponsorship rights for AFC authorized events from 2021 to 2024 in mainland China; it was stipulated that Newco Cayman would pay USD 150 million to the AFC as consideration for the agreement, and that the aforementioned amount would be paid in installments. In the relevant guarantee letters attached to the agreements, it was stipulated that Mingcheng Culture and Sports would provide full guarantee for Newco Cayman’s USD 150 million payment obligations to the AFC under the main agreement.

(4) The Company provided guarantees for the loan from a related party, Contemporary Football Club, to Zeng Mou Chao

On June 4, 2020, Zeng Mou Chao and Mingcheng Culture and Sports Football Club Co., Ltd. (hereinafter referred to as “Contemporary Football Club”) signed a contract, stipulating that Zeng Mou Chao would provide a loan of 7 million yuan to Contemporary Football Club. On June 5, 2020, Mingcheng Culture and Sports and Zeng Mou Chao and Contemporary Football Club entered into a “Guarantee Contract” (three-party), stipulating that Mingcheng Culture and Sports would provide an irrevocable joint liability guarantee for the loan repayment obligations of Contemporary Football Club.

The above guarantees were not disclosed in the 2020 annual report, constituting a material omission as provided for in Article 197, Paragraph 2 of the “Securities Law.” On October 9, 2023, the Company published the “Announcement on the Progress of Litigation Involving the Company,” stating that it had received a court judgment that Mingcheng Culture and Sports does not bear the guarantee liability for Contemporary Investment’s loan. On November 13, 2023, the Company published the “Announcement on the Release of Guarantees between the Company and the Former Wholly Controlled Subsidiary and the Asian Football Confederation.” As of then, the Company’s full guarantee liability for Newco Cayman’s payment obligations to the AFC was released. In the Company’s “Reorganization Plan,” it is disclosed that Contemporary Group and its related parties have issued written undertakings to the Company, committing to resolve the Company’s non-compliant guarantee issue by means of waiving, unconditionally, the Company’s liabilities for compensation that should be borne legally, in an amount equivalent to the Company’s debts to Contemporary Group and its related parties.

II. Mingcheng Culture and Sports’ 2020 and 2021 annual reports contain false records

(1) The 2020 annual report contains false records

Pursuant to the relevant agreement terms, Mingcheng Culture and Sports was required to pay the equity repurchase amount of 20.21 million yuan to Wuhan Wenxin Equity Investment Partnership (Limited Partnership) (hereinafter referred to as “Wenxin Fund”) by December 11, 2020. Under the circumstance that the repurchase obligation was triggered, Mingcheng Culture and Sports failed to recognize the above 20.21 million yuan repurchase debt as a liability in the 2020 annual report, constituting false records as provided for in Article 197, Paragraph 2 of the “Securities Law.”

(2) The 2021 annual report contains false records

1. Repurchase obligations not recognized as liabilities

Mingcheng Culture and Sports was required to pay equity investment repurchase amount of 30 million yuan to Shangyu Maorong Equity Investment Partnership (Limited Partnership) by the end of 2021. Mingcheng Culture and Sports did not recognize the above 30 million yuan repurchase debt as a liability in the 2021 annual report, constituting false records as provided for in Article 197, Paragraph 2 of the “Securities Law.”

2. Inaccurate revenue recognition

With Newco Cayman recognizing and allocating the La Liga copyright business revenue for the 21/22 season based on USD 150 million, in the preparation of Mingcheng Culture and Sports’ 2021 annual report, Mingcheng Culture and Sports recognized and allocated the La Liga copyright business revenue for the 21/22 season based on EUR 45 million. It failed to sufficiently use adverse information that could be obtained. The basis for revenue recognition was insufficient, violating Article 18 of the “Basic Standards for Enterprise Accounting—Basic Standard,” which provides that when enterprises make accounting recognition, measurement and reporting for transactions or matters, they should maintain due care and should not overestimate assets or income or underestimate liabilities or expenses. As a result, Mingcheng Culture and Sports’ 2021 annual report overstated revenue by 98,420,166.89 yuan. On June 26, 2022, the Company published an “Announcement on Correction of Prior Accounting Errors and Retrospective Adjustments,” correcting the revenue recognition for the La Liga league project and conducting retrospective adjustments to the relevant financial data in the 2021 annual report.

3. Insufficient inventory impairment

Some inventory items of Mingcheng Culture and Sports could not be filmed or had counterparties become unreachable, making it impossible to complete the predetermined objectives. In addition, before the disclosure of the 2021 annual report, the Company’s announcements indicated debt defaults, and there were clear signs of inventory impairment. Based on Articles 15 and 16 of “Enterprise Accounting Standards No. 1—Inventories,” the Company should recognize impairment provision for all inventory items in the current period. Mingcheng Culture and Sports recognized impairment provisions for inventory write-downs for 2021 of 82.1542 million yuan, and the main inventory for the recognized impairment was film and television segment finished goods. After the Company’s self-audit, it was confirmed that for six categories of inventories, additional impairment provisions for inventory write-downs should be recognized in 2021, and additional impairment provisions totaling 98,002,462.88 yuan should be recognized. The failure to recognize inventory write-down provisions in a timely manner caused Mingcheng Culture and Sports’ 2021 annual report to overstate total profit by 98,002,462.88 yuan.

4. Inaccurate goodwill impairment

Strong Vision Media Co., Ltd. was the company acquired by Mingcheng Culture and Sports in 2015. At the time of acquisition, goodwill amounting to 339.9146 million yuan was generated in consolidated financial statements; by the time of the 2021 annual report, the remaining goodwill carrying value was 212,515,188.11 yuan. Mingcheng Culture and Sports had inconsistencies in the underlying data used for the goodwill impairment revenue forecast, with revenue forecast data for nine film and television projects not matching the actual situation, with no objective evidence supporting them or with them contradicting objective evidence. Meanwhile, at the time of disclosure in the 2021 annual report, the actual situation already included debt defaults and tight funding. In accordance with Article 5 of “Enterprise Accounting Standards No. 8—Asset Impairment,” the results of the goodwill impairment test in 2021 were inaccurate, which led to the annual report understating goodwill impairment provision by 212,515,188.11 yuan, and the consolidated financial statements for 2021 overstated total profit by 212,515,188.11 yuan.

The above matters collectively caused Mingcheng Culture and Sports’ 2021 annual report financial statements to overstate revenue by 98,420,166.89 yuan, understate impairment amount by 310,517,650.99 yuan, understate liabilities by 30,000,000 yuan, and overstate total profit by 408,937,817.88 yuan.

III. Mingcheng Culture and Sports failed to disclose arbitration information and related-party transactions as required

(1) Failure to disclose arbitration information in a timely manner

1. Qingcheng Yinchuang Investment Management Co., Ltd. (hereinafter referred to as “Qingcheng Yinchuang”) has a dispute over a loan contract with Mingcheng Culture and Sports, with the amount involved of 70 million yuan. Qingcheng Yinchuang applied to the Wuhan Arbitration Commission, and Mingcheng Culture and Sports should have received an arbitration notice from the Wuhan Arbitration Commission no later than January 20, 2022.

2. Zhuhai Hexie Anlang Investment Enterprise (Limited Partnership) (hereinafter referred to as “Hexie Anlang”) has a dispute over a loan contract with entities including Mingcheng Culture and Sports. Hexie Anlang submitted an arbitration application, with the amount involved of 264 million yuan. Mingcheng Culture and Sports should have received an arbitration notice no later than March 30, 2022.

By June 18, 2022, Mingcheng Culture and Sports published the “Announcement of Major Litigations and Arbitrations Involving Wuhan Contemporary Mingcheng Culture Sports Group Co., Ltd. and Its Subsidiaries,” disclosing the above situation.

(2) Failure to disclose related-party transactions in a timely manner

On March 1, 2022, Mingcheng Culture and Sports and Shengdao Guoyu Investment Management Partnership (Limited Partnership) (hereinafter referred to as “Shengdao Guoyu”) signed a “Supplementary Agreement II to the Equity Transfer Agreement.” Shengdao Guoyu transferred Beijing Xinai Sports Media Technology Co., Ltd. (Mingcheng Culture and Sports’ investee company; hereinafter referred to as “Xinai Sports”) with a consideration of 20.97 million yuan. If Xinai Sports fails to list overseas, Mingcheng Culture and Sports shall, pursuant to the “Equity Income Rights Transfer Agreement” signed with Shengdao Guoyu, repurchase the equity interests in Xinai Sports held by Shengdao Guoyu at an annualized return rate of 10%. Shengdao Guoyu is a related party of Mingcheng Culture and Sports. The agreements signed between Mingcheng Culture and Sports and Shengdao Guoyu constitute a related-party transaction, and the Company did not disclose the above information in a timely manner as required.

The above illegal facts are supported by evidence including relevant announcements of Mingcheng Culture and Sports, explanations issued by relevant parties, relevant agreements, accounting vouchers, interrogation records of relevant personnel, etc., sufficient to determine.

Mingcheng Culture and Sports’ 2020 annual report contains a material omission and its 2020 and 2021 annual reports contain false records, violating Article 78, Paragraph 2 of the “Securities Law,” and constituting illegal acts as described in Article 197, Paragraph 2 of the “Securities Law”; Mingcheng Culture and Sports’ failure in 2022 to disclose arbitration information and related-party transactions in accordance with the rules violates Article 80, Paragraph 2, items 3 and 10 of the “Securities Law,” and constitutes illegal acts as described in Article 197, Paragraph 1 of the “Securities Law.”

For the material omissions in Mingcheng Culture and Sports’ 2020 annual report, Yi Rentao, the Chairman of the Company at the time, is the principal responsible person for the Company’s information disclosure. He knew of and participated in the relevant matters and signed the 2020 annual report; therefore, he is the direct responsible person in charge for the material omission in Mingcheng Culture and Sports’ 2020 annual report. Wang Gao Wei, the Company’s Vice General Manager and Secretary of the Board at the time, knew of and participated in the two guarantee matters involving Contemporary Investment and Newco Cayman and signed the 2020 annual report; therefore, he is another direct responsible person. Li Zhenyu, the Vice General Manager and Chief Financial Officer at the time, knew of and participated in the guarantee matter for Contemporary Investment’s loan and signed the 2020 annual report; therefore, she is another direct responsible person. Yu Lingxiao, the director of the Company at the time, knew of and participated in the guarantee matter involving Newco Cayman and signed the 2020 annual report; therefore, he is another direct responsible person.

Regarding the false records in Mingcheng Culture and Sports’ 2020 and 2021 annual reports, Yi Rentao, the Chairman of the Company at the time, as the principal responsible person for information disclosure, should ensure that the 2020 and 2021 annual reports are true, accurate and complete. His signing on the 2020 annual report and 2021 annual report makes him the direct responsible person in charge for the false records in Mingcheng Culture and Sports’ 2020 and 2021 annual reports. Li Zhenyu, the Vice General Manager and Chief Financial Officer at the time, when preparing the 2020 and 2021 annual reports, did not maintain comprehensive due diligence; her signing on the 2020 annual report and 2021 annual report makes her another direct responsible person for the false records in Mingcheng Culture and Sports’ 2020 and 2021 annual reports.

For Mingcheng Culture and Sports’ failure in 2022 to disclose arbitration information and related-party transaction matters in accordance with the rules, Yi Rentao, the Chairman of the Company at the time, as the principal responsible person for information disclosure, did not actively perform his duties to ensure timely disclosure of the information, and he is the direct responsible person. Among these, for the matter of Mingcheng Culture and Sports not disclosing arbitration information involving Qingcheng Yinchuang in a timely manner, Gao Wei, then Secretary of the Board; Yan Aihua, then General Manager; and Li Zhenyu, then Vice General Manager and Chief Financial Officer, knew of the matter but did not actively perform their duties to ensure timely disclosure of the information. The three are other direct responsible persons.

Li Zhenyu put forward the following defense opinions during the statement and hearing process: first, the case dossier omitted her written statements of objection to the inquiry matters. Second, she had no way to know about the relevant matters and there was no subjective intent or fault. Third, the 2020 annual report matters had passed the statute of limitations for prosecution. Fourth, the penalty was too severe. In conclusion, she suggests that she be exempted from punishment.

After review, our bureau holds that: first, there was no omission in the case dossier. Second, with respect to the matter of the Company providing guarantees for Newco Cayman, we accept the defense opinions submitted by Li Zhenyu in accordance with law. Third, with respect to other matters involving Li Zhenyu, the evidence currently available to our bureau is sufficient to determine. Fourth, the 2020 annual report matters have not exceeded the penalty limitation period. Fifth, when determining the penalty, our bureau has comprehensively considered Li Zhenyu’s fulfillment of duties and knowledge of the situation, and the penalty amount is appropriate. In summary, our bureau partially adopts Li Zhenyu’s defense opinions and reasonably reduces the penalty amount.

During the statement and hearing process, Gao Wei submitted the following defense opinions: first, she was not aware of the Company providing guarantees for Contemporary Investment and Contemporary Football Club, and therefore should not bear responsibility. Second, she requests a lighter penalty for the Company providing guarantees for Newco Cayman and the failure to timely disclose the significant arbitration matter involving Qingcheng Yinchuang. In conclusion, she suggests that no penalty be imposed on the two matters, and the penalties be reduced for the two matters.

After review, our bureau holds that: first, with respect to the matter of the Company providing guarantees for Contemporary Investment not disclosed, the case evidence can prove that Gao Wei participated in handling and knew of the relevant situation; we do not accept her defense opinions on this item. Second, with respect to the matter of the Company providing guarantees for Contemporary Football Club not disclosed, we accept the defense opinions submitted by Gao Wei in accordance with law. Third, when determining the penalty, our bureau has comprehensively considered factors such as Gao Wei’s fulfillment of duties and knowledge of the situation, and the penalty amount is appropriate. In summary, our bureau partially adopts Gao Wei’s defense opinions and reasonably reduces the penalty amount.

During the statement and hearing process, Yan Aihua submitted the following defense opinions: first, Yan Aihua was unable to know that the Company provided guarantees for Newco Cayman. Second, during the period when the arbitration matters occurred, Yan Aihua was no longer a director of the Company and did not manage or oversee the arbitration matters, nor was she aware of them. In conclusion, she suggests that no penalty be imposed on her.

After review, our bureau holds that: first, with respect to the guarantee matter, we accept the defense opinions submitted by Yan Aihua in accordance with law. Second, we accept Yan Aihua’s defense opinion that she was not a serving director; and, based on the relevant evidence, Yan Aihua’s defense opinion that she did not know about the arbitration matters does not match the facts and is therefore not accepted. In summary, our bureau partially adopts Yan Aihua’s defense opinions and reasonably reduces the penalty amount.

Based on the facts, nature, circumstances and the level of social harm of the parties’ illegal acts, our bureau has decided:

For the Company’s failure to disclose relevant information in accordance with the rules, in accordance with the provisions of Article 197, Paragraph 1 of the “Securities Law”:

I. Issue a warning to Wuhan Mingcheng Culture Sports Group Co., Ltd. and impose a fine of 2 million yuan;

II. Issue a warning to Yi Rentao and impose a fine of 1 million yuan;

III. Issue a warning to Gao Wei and impose a fine of 200,000 yuan;

IV. Issue a warning to Li Zhenyu and impose a fine of 200,000 yuan;

V. Issue a warning to Yan Aihua and impose a fine of 200,000 yuan.

For Wuhan Mingcheng Culture Sports Group Co., Ltd.’s 2020 annual report having material omissions and false records, and the 2021 annual report having false records, in accordance with the provisions of Article 197, Paragraph 2 of the “Securities Law”:

I. Issue a warning to Wuhan Mingcheng Culture Sports Group Co., Ltd. and impose a fine of 5.6 million yuan;

II. Issue a warning to Yi Rentao and impose a fine of 3 million yuan;

III. Issue a warning to Li Zhenyu and impose a fine of 1.25 million yuan;

IV. Issue a warning to Gao Wei and impose a fine of 600,000 yuan;

V. Issue a warning to Yu Lingxiao and impose a fine of 500,000 yuan.

Combining the two items above:

I. Issue a warning to Wuhan Mingcheng Culture Sports Group Co., Ltd. and impose a fine of 7.6 million yuan;

II. Issue a warning to Yi Rentao and impose a fine of 4 million yuan;

III. Issue a warning to Li Zhenyu and impose a fine of 1.45 million yuan;

IV. Issue a warning to Gao Wei and impose a fine of 800,000 yuan;

V. Issue a warning to Yu Lingxiao and impose a fine of 500,000 yuan;

VI. Issue a warning to Yan Aihua and impose a fine of 200,000 yuan.

The above parties shall, within 15 days from the date of receipt of this administrative penalty decision, directly remit the fine to the state treasury. For the specific payment method, please refer to the explanation attached to this administrative penalty decision. At the same time, copies of payment receipts marked with the parties’ names shall be sent to the Hubei Regulatory Bureau of the China Securities Regulatory Commission for filing. If the parties are not satisfied with this administrative penalty decision, they may apply for administrative reconsideration to the China Securities Regulatory Commission within 60 days from the date of receipt of this administrative penalty decision (the application for administrative reconsideration may be sent via postal express to the Legal Affairs Division of the China Securities Regulatory Commission), or may directly file an administrative lawsuit in a people’s court with jurisdiction within 6 months from the date of receipt of this administrative penalty decision. During the period of reconsideration and litigation, the above decisions shall not be suspended from execution.

II. Impact on the Company and risk提示

1. According to the circumstances set out in the “Administrative Penalty Decision,” the Company has not triggered any of the major illegal and forced delisting circumstances provided in Article 9.5.2 of the “Shanghai Stock Exchange Stock Listing Rules (April 2025 amendment)” (hereinafter referred to as the “Stock Listing Rules”).

2. The Company was previously subject to other risk warning due to being in the filing investigation period, in accordance with Article 9.8.1, Paragraph 1, item (9) of the “Stock Listing Rules.” According to the provisions of the relevant “Notice on Issuing the ‘Shanghai Stock Exchange Stock Listing Rules (April 2024 amendment)’,” for companies that received a preliminary notice of administrative penalty before the publication of the “Stock Listing Rules (April 2024 amendment)” and receive an administrative penalty decision after publication, upon receipt of the penalty decision, their stocks shall be subject to other risk warning from the date of receipt of the penalty decision. Therefore, since the date of receipt of the “Administrative Penalty Decision,” the Company’s stock will continue to be subject to other risk warning.

3. Pursuant to Article 9.8.8 of the “Stock Listing Rules,” “after a listed company’s stock has been subject to other risk warnings due to the circumstances stipulated in Article 9.8.1, Paragraph 1, item (7), and at the same time meets the following conditions, the company may apply to this Exchange to revoke the other risk warning imposed on its stock: (1) 12 months have passed since the CSRC issued the administrative penalty decision; and (2) the company has restated retrospectively the financial and accounting reports for the relevant years in relation to the matters involved in the administrative penalty decision.” and other relevant provisions, the Company has already restated retrospectively the financial and accounting reports for the relevant years. After the conditions are met, it will apply to revoke the other risk warning as soon as possible.

4. The violations involved in the “Administrative Penalty Decision” occurred in 2022 and earlier. All the issues related to the above violations have been fully rectified, and will not have an adverse impact on the Company’s current and future production and operations.

5. The Company-designated information disclosure media are the “China Securities Journal,” the “Shanghai Securities News,” the “Securities Daily,” the “Securities Times,” and the website of the Shanghai Stock Exchange (

For and on behalf of the Company, as hereby announced.

Board of Directors of Wuhan Mingcheng Culture Sports Group Co., Ltd.

March 21, 2026

Stock code: 600136 Stock abbreviation: ST Mingcheng Announcement No.: Lin 2026-007

Wuhan Mingcheng Culture Sports Group Co., Ltd.

Announcement on the continued implementation of other risk warnings for the Company’s stock

The board of directors of this Company and all directors guarantee that the contents of this announcement contain no false records, misleading statements or material omissions, and assume legal responsibility for the truthfulness, accuracy and completeness of the contents.

I. Circumstances in which other risk warnings were imposed previously on the Company

On March 29, 2025, due to Wuhan Mingcheng Culture Sports Group Co., Ltd. (hereinafter referred to as the “Company”) still being in the period of filing investigation, pursuant to Article 9.8.1, Paragraph 1, item (9) of the “Shanghai Stock Exchange Stock Listing Rules (April 2024 amendment)” (hereinafter referred to as the “Stock Listing Rules”), the Company’s stock was subject to continuing other risk warnings. (For details, see the Company’s announcement, Announcement No.: Lin 2025-015)

II. Circumstances under which other risk warnings are continued for the Company

On March 20, 2026, the Company received the “Administrative Penalty Decision” ([2026] No. 4) issued by the Hubei Regulatory Bureau of the China Securities Regulatory Commission. Pursuant to the relevant provisions of the “Notice on Issuing the ‘Shanghai Stock Exchange Stock Listing Rules (April 2024 amendment)’,” for companies that received a preliminary notice of administrative penalty before the publication of the “Stock Listing Rules,” and received an administrative penalty decision after publication, from the date of receipt of the penalty decision, their stocks shall be subject to continuing other risk warnings. Therefore, since the date of receipt of the “Administrative Penalty Decision,” the Company’s stock will continue to be subject to other risk warnings.

Pursuant to Article 9.8.8 of the “Stock Listing Rules (April 2025 amendment),” “after a listed company’s stock has been subject to other risk warnings due to the circumstances stipulated in Article 9.8.1, Paragraph 1, item (7), and at the same time meets the following conditions, it may apply to this Exchange for the revocation of other risk warnings imposed on its stock: (1) 12 months have passed since the CSRC issued the administrative penalty decision; and (2) the company has restated retrospectively the financial and accounting reports for the relevant years in relation to the matters involved in the administrative penalty decision,” etc., the Company has already restated retrospectively the financial and accounting reports for the relevant years. After the conditions are met, it will apply to revoke the other risk warning as soon as possible.

III. Developments after the Company was subject to other risk warnings

1. The Company held the 11th meeting of the Tenth Board of Directors and the 10th meeting of the Tenth Board of Supervisors on April 29, 2024, and the 12th meeting of the Tenth Board of Directors and the 11th meeting of the Tenth Board of Supervisors on May 13, 2024, respectively. The Company deliberated and approved the “Proposal on Accounting Errors and Retrospective Adjustments” and the “Proposal on Correction of Prior Accounting Errors and Retrospective Adjustments,” and adjusted the Company’s financial data in the relevant annual reports. (For details, see the Company’s announcements, Announcement No.: Lin 2024-049 and 060)

2. The Company continues to advance the modernization of its governance system construction, and systematically optimizes its governance structure, pursuant to the “Company Law of the People’s Republic of China,” the “Guidelines for Corporate Governance of Listed Companies,” and related regulatory requirements. The Company has amended and improved its “Articles of Association” and multiple core management systems. By clearly defining the rights and responsibilities and duties of each governance body, the Company has built a governance mechanism characterized by legal determination of rights and responsibilities, transparent responsibilities, coordinated operation, and effective checks and balances. The efficiency of decision-making and the level of standardized operation have been further improved.

The Company-designated information disclosure media are the “China Securities Journal,” the “Shanghai Securities News,” the “Securities Daily,” the “Securities Times,” and the website of the Shanghai Stock Exchange (

For and on behalf of the Company, as hereby announced.

Board of Directors of Wuhan Mingcheng Culture Sports Group Co., Ltd.

March 21, 2026

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