Recently, in connection with the routine inspections following the “May 4 Fireworks Factory Explosion Incident,” our company has received a number of reports concerning information detrimental to our reputation. Upon verification, we have confirmed that certain competitors within the industry have deliberately disseminated false statements and misleading information targeting our company, with the intention of damaging our commercial reputation, misleading our business partners, disrupting the normal order of market operations, and adversely affecting our brand image and ongoing cooperation with clients.

In response, we hereby solemnly clarify and declare the following:

Our company has always adhered to the principles of integrity, compliance, and lawful business operations. We strictly observe professional and commercial standards in all aspects of our business activities, including product and service delivery, contract fulfillment, and cooperation procedures. All operations are conducted in a lawful, transparent, and trustworthy manner. The allegations and rumors currently circulating online are entirely unfounded, and the legitimate rights and interests of all our partners remain fully protected.

The acts of defamation, fabrication, and malicious slander committed by the parties involved constitute violations of the Anti-Unfair Competition Law of the People’s Republic of China and amount to unfair competitive practices. Our company has already comprehensively preserved all relevant evidence of infringement and has formally initiated legal proceedings to safeguard our rights and interests.

We will subsequently pursue all necessary legal measures, including the issuance of attorney letters, administrative complaints, and judicial actions, to demand the immediate cessation of all infringing conduct. We will also require the responsible parties to issue public apologies, eliminate the adverse impact caused, and fully compensate our company for all reputational and economic losses incurred.

We sincerely urge all partners and associates not to believe or spread rumors. Should you have any concerns or questions, please feel free to contact us directly for verification. Our company will continue to uphold the highest standards of quality and commitment, and will make every effort to ensure the stable and orderly progress of all ongoing cooperation.

Hereby declared.

ACME FIREWORKS CO., LTD.

May 25 2026