Qingdao Topscomm Communication INC.(603421.SH) received a regulatory letter from the Shanghai Stock Exchange regarding the company's risk matters.

Qingdao Topscomm Communication INC. (603421.SH) announced that on November 18, 2024, the company received a regulatory letter from the Shanghai Stock Exchange regarding the risk issues of Qingdao Topscomm Communication INC. The company disclosed on November 18, 2024 that it has been subjected to market entry restrictions by China Southern Power Grid Co., Ltd. (referred to as Southern Power Grid) for a period of 15 months, starting from July 29, 2024. Previously, the company had been subject to a "circuit breaker mechanism" by State Grid Corporation of China (referred to as State Grid) from February 23, 2024 to February 22, 2026. The Stock Exchange requested the company and related parties to verify and disclose the following: 1. The impact of risk issues on the company's production and operation. The company's related announcements indicate that the "circuit breaker mechanism" by State Grid and the "market entry restrictions" by Southern Power Grid will significantly reduce the company's operating income. The company is required to supplement the disclosure of the company's bidding activities, contracts signed, and revenue achieved from State Grid and Southern Power Grid in the past three years. Analyze and evaluate the actual impact of the risk issues on the company's future production and operation, considering the restrictions on bidding activities, and fully disclose the related risks. The company's annual auditor is requested to provide an opinion. 2. Specific measures taken by the company to resolve the risk issues. The company's related announcements indicate that the company will strengthen compliance operations, transform business models, and explore new markets to reduce the impact of risk issues. The company is requested to explain the specific risk mitigation measures already taken or planned, current progress, and carefully assess the expected time and extent of impact.