Dear Valued Partner,

We sincerely thank you for your trust, understanding, and continued support during this challenging period for the fireworks industry. We greatly value our long-standing partnership and appreciate the confidence you have placed in our company.

Following the industry-wide inspections and reviews initiated after the May 4, 2026 major explosion accident at Huasheng Fireworks Factory, our company and Allen have actively cooperated with all inquiries and verification procedures conducted by the relevant authorities. Such cooperation is a normal part of regulatory compliance and reflects our commitment to transparency and responsible business operations.

During this period, certain competitors have unfortunately misrepresented publicly available information and circulated inaccurate claims, creating unnecessary concern among customers and business partners. We believe it is important to provide you with clear and accurate information directly from us.

We are pleased to confirm that all related inspections, reviews, and verification procedures concerning our company have now been completed. According to the official findings of the relevant authorities, our operating qualifications, business activities, and management procedures have been thoroughly reviewed and found to be fully compliant with applicable laws and regulations. No violations or compliance issues were identified during the review process.

Furthermore, our import and export operations, supply chain services, logistics and warehousing activities, freight forwarding arrangements, and business partnerships are entirely unrelated to the aforementioned accident and have not been subject to any regulatory findings or restrictions. All business functions continue to operate normally, efficiently, and in full compliance with applicable requirements.

Since our establishment, Acme Fireworks / Red Lantern Fireworks has consistently adhered to the principles of compliance, transparency, integrity, and responsible business conduct. We remain committed to observing all applicable laws, regulations, and international trade requirements while providing reliable products and services to customers around the world.

We remain fully confident in our compliance management system, operational standards, and long-term business development. Regarding any false or misleading information circulated in the marketplace, we have preserved the relevant evidence and reserve the right to take appropriate legal action to protect our reputation, our business partners, and the integrity of fair market competition.

We view this industry challenge as an opportunity to further strengthen our operational excellence, compliance management, and customer service standards. Our priority remains ensuring stable production coordination, reliable supply, and efficient delivery to all of our partners worldwide.

We highly value the trust and support of your company and sincerely appreciate your continued confidence in us. We look forward to strengthening our mutually beneficial partnership and achieving sustainable, long-term success together.

Should you require any compliance documentation, official verification materials, or additional clarification, please do not hesitate to contact us. We will be pleased to provide any information necessary to support your review and verification process.

Thank you for your continued trust and partnership.

Sincerely,

ACME FIREWORKS CO., LTD. / RED LANTERN IMPORT AND EXPORT CO.,LTD.

June 6, 2026