Shenzhen Ruihe Construction Decoration Co., Ltd. Announcement on Abnormal Fluctuations in Stock Trading

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Security short name: ST Ruihe; Security code: 002620; Announcement No.: 2026-012

Announcement of Shenzhen Ruihe Construction Decoration Co., Ltd. regarding abnormal fluctuations in stock trading

All members of the Company and the Board of Directors hereby guarantee that the contents of this announcement are true, accurate, and complete. There are no false records, misleading statements, or material omissions.

Special risk warning:

1. On January 30, 2026, the Company disclosed on the Cninfo website (www.cninfo.com.cn) the “2025 Annual Performance Forecast” (Announcement No.: 2026-003). According to the Company’s preliminary calculations by its finance department, it is expected that the Company’s net assets at the end of 2025 will be negative and its net profit will be negative. If the Company’s audited net assets at the end of 2025 are negative, pursuant to the provisions of Article 9.3.1, paragraph 1, item 2 of the Shenzhen Stock Exchange’s “Stock Listing Rules,” the Company’s stock trading will be subject to delisting risk warning after the disclosure of the 2025 annual report (with “*ST” placed before the security short name).

2. On March 25, 2026, the Company disclosed externally the “Announcement on Public Solicitation and Selection of Reorganization Investors.” This solicitation for reorganization investors involves significant uncertainty. There is a possibility that a qualified reorganization investor will not be recruited during the registration period, that the reorganization investor will not sign the investment agreement on time, etc.

3. There is significant uncertainty as to whether the Company can enter the reorganization proceedings: the court’s approval of the Company’s pre-reorganization does not mean that the court will ultimately accept the reorganization application submitted by the applicant. Whether the Company will subsequently enter the reorganization proceedings remains uncertain. Whether or not the Company enters the reorganization proceedings, the Company will actively carry out daily production and business operations management based on the existing foundation.

4. Pursuant to the relevant provisions of the Shenzhen Stock Exchange’s “Stock Listing Rules,” if the court rules to accept the reorganization application submitted by the applicant, the Shenzhen Stock Exchange will implement a delisting risk warning for the Company’s stock trading; if the Company is declared bankrupt due to reorganization failure, the Company’s stock will face the risk of being delisted.

Investors are kindly reminded to pay attention to investment risks and invest rationally.

I. Overview of the abnormal fluctuations in stock trading

Shenzhen Ruihe Construction Decoration Co., Ltd. (hereinafter referred to as the “Company”) shares (security name: ST Ruihe; security code: 002620) increased in closing price deviation values cumulatively by more than 12% over three consecutive trading days on March 25, 2026, March 26, 2026, and March 27, 2026. According to the relevant provisions of the Shenzhen Stock Exchange’s “Trading Rules,” this falls under circumstances of abnormal stock trading fluctuations.

II. Explanations of the Company’s attention to and verification of relevant matters

In response to the abnormal fluctuations in the Company’s stock trading, as of the date of disclosure of this announcement, the Company has verified the relevant matters, and hereby explains the situation as follows:

1. There is no need to supplement or correct any information previously disclosed by the Company.

2. The Company has not found any undisclosed material information in the near term that may or has already had a significant impact on the trading price of the Company’s shares.

3. On July 19, 2025, the Company disclosed externally the “Announcement on the Receipt of a Decision on Initiating Pre-reorganization and Designating the Administrator.” On July 18, 2025, the Company received the (2025) Yue 03 Po Shen 661 “Decision of the Guangdong Provincial Shenzhen Intermediate People’s Court” delivered by the Guangdong Provincial Shenzhen Intermediate People’s Court (hereinafter referred to as the “Shenzhen Intermediate Court” or the “Court”). The decision states: “With the debtor’s consent, this Court decides to carry out a pre-reorganization of Shenzhen Ruihe Construction Decoration Co., Ltd.” “Through random selection using ball-tossing procedures, this Court designates Foshan Beste Accounting Firm Co., Ltd. as the pre-reorganization administrator for Shenzhen Ruihe Construction Decoration Co., Ltd., with the person-in-charge being Wen Guolong” (hereinafter referred to as the “Administrator”).

There is significant uncertainty as to whether the Company can enter the reorganization proceedings: the court’s approval of the Company’s pre-reorganization does not mean that the court will ultimately accept the reorganization application submitted by the applicant. Whether the Company will subsequently enter the reorganization proceedings remains uncertain. Whether or not the Company enters the reorganization proceedings, the Company will actively carry out daily production and business operations management based on the existing foundation.

4. Upon verification, there are no material matters involving the Company, the controlling shareholder, or the actual controller that should have been disclosed but have not been disclosed.

5. Upon verification, during the period of abnormal stock price fluctuations, the controlling shareholder and actual controller of the Company have not engaged in buying or selling the Company’s shares.

III. Explanation of whether there is undisclosed information that should have been disclosed

The Board of Directors confirms that the Company currently has no matters that, in accordance with the Shenzhen Stock Exchange’s “Stock Listing Rules” and related requirements, should be disclosed but have not been disclosed; the Board of Directors has also not been informed of any information that the Company has in accordance with the Shenzhen Stock Exchange’s “Stock Listing Rules” and related requirements that should be disclosed but has not been disclosed, and that would have a significant impact on the trading price of the Company’s shares; the Company’s information previously disclosed does not require any correction or supplementation.

IV. Risk warning

1. Upon self-examination, the Company has no circumstances of violating fair information disclosure.

2. Due to the reasons set out below, since the Company resumed trading on April 30, 2025, the Shenzhen Stock Exchange has implemented other risk warnings for the Company’s stock trading. The security short name of the Company’s stock has changed from “Ruihe Co., Ltd. Shares” to “ST Ruihe.”

(1) Pursuant to the provisions of Item (7) of Article 9.8.1 of the Shenzhen Stock Exchange’s “Stock Listing Rules,” “for the three most recent fiscal years, the net profits before and after deducting non-recurring gains and losses are all negative; and the audit report for the most recent fiscal year indicates uncertainty regarding the Company’s ability to continue operating,” the Shenzhen Stock Exchange will implement other risk warnings for the Company’s stock.

(2) Because “the Company’s major bank accounts have been frozen,” it meets the provisions of Item (6) of Article 9.8.1 of the Shenzhen Stock Exchange’s “Stock Listing Rules,” the Shenzhen Stock Exchange will implement other risk warnings for the Company’s stock.

3. On January 30, 2026, the Company disclosed on the Cninfo website (www.cninfo.com.cn) the “2025 Annual Performance Forecast” (Announcement No.: 2026-003). According to the Company’s preliminary calculations by its finance department, it is expected that the Company’s net assets at the end of 2025 will be negative and its net profit will be negative. Based on this forecast, the Company’s net profit attributable to shareholders of listed companies in 2025 is expected to be from -125.00 million yuan to -65.00 million yuan, and the Company’s shareholders’ equity attributable to the parent company at the end of 2025 is expected to be from -82.00 million yuan to -42.00 million yuan. If the Company’s audited net assets at the end of 2025 are negative, pursuant to the provisions of Article 9.3.1, paragraph 1, item 2 of the Shenzhen Stock Exchange’s “Stock Listing Rules,” the Company’s stock trading will be subject to delisting risk warning after the disclosure of the 2025 annual report (with “*ST” placed before the security short name). Investors are kindly reminded to pay attention to investment risks.

4. On March 25, 2026, the Company disclosed externally the “Announcement on Public Solicitation and Selection of Reorganization Investors.” This solicitation for reorganization investors involves significant uncertainty. There is a possibility that a qualified reorganization investor will not be recruited during the registration period, that the reorganization investor will not sign the investment agreement on time, etc. Investors are kindly reminded to pay attention to investment risks and invest rationally.

5. The Company hereby solemnly reminds all investors: The Company’s designated information disclosure media are “China Securities Journal,” “Shanghai Securities News,” “Securities Daily,” “Securities Times,” and the Cninfo website. All of the Company’s information shall be subject to what is published in the designated media above.

6. The Company will strictly comply with the relevant laws, regulations, and requirements, earnestly fulfill its information disclosure obligations, and promptly do a good job of information disclosure. Investors are kindly reminded to invest rationally and pay attention to investment risks.

This is hereby announced.

Shenzhen Ruihe Construction Decoration Co., Ltd.

Board of Directors

March 27, 2026

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