Involving an advance payment of 8.26 billion yuan, the annual report of Tianrui Cement continued to be postponed

On June 23, China Tianrui Cement issued a supplementary announcement on the delayed publication of its 2025 annual results. According to

the announcement, the auditor requested complete operating records of more than 1600 transactions involving purchase orders, supplier contracts and other documents from about 20 subsidiaries. Because these data are scattered and stored in subsidiaries, the workload of collection and collation is huge, resulting in a serious lag in the audit progress. The core issue of the blocked

audit points to a huge advance payment from a coal supplier. As of December 31, 2025, the unaudited balance of the advance payment was about 8.26 billion yuan. The auditor raised two major questions: one is that the true commercial background and rationality of such a large amount of capital transactions are doubtful; the other is that the advance payment has been in an unsettled state for a long time, and it is uncertain whether it can be fully recovered.

As early as the announcement on March 30, the company disclosed the auditor's doubts about the advance payment. In the next three months, although the company provided supplementary materials such as advance payment details, bank remittance vouchers and statements to the auditors, the auditors still asked for more supporting documents, and the annual report was delayed again and again.

Faced with the audit deadlock, the company announced that it had appointed Zhongxinghua (Hong Kong) Consulting Co., Ltd. to conduct an independent investigation. The announcement stressed that Zhongxinghua (Hong Kong) has no conflict of interest with the company and its related parties.

The independent investigation focused on two core issues: first, the background and business rationale of the financial transactions with the coal supplier; and second, the recoverability of the outstanding balance of the advance payment from the supplier. The survey is expected to be completed in eight to 10 weeks.

The Company has formulated a supporting action plan: fully cooperate with the data collection, lead the whole process of independent investigation by the audit committee composed of independent directors, and employ institutions to evaluate the internal control process.

The announcement made it clear that the shares would continue to be suspended until the results of the independent investigation were published and the annual results of 2025 were published. Subject to the completion of the independent investigation, the Board will determine the expected release date of the Annual Results.