The actual controller of Wei Long Grape Wine (603779.SH), Yan Pengfei, is under residential surveillance for alleged embezzlement of funds.

Wei Long Grape Wine (603779.SH) announced that the company received a notification today from Mr. Yan Pengfei, the actual controller of the company, that he is under residential surveillance designated by Huantai County Public Security Bureau for suspected embezzlement. The company has a sound organizational structure and a standardized governance system. It operates strictly in accordance with laws, regulations, and the company's articles of association. Upon self-inspection, the company has found no violations of guarantees or instances where the actual controller used company funds. Mr. Yan Pengfei does not hold a position as a director, supervisor, or senior manager in the company, and is not involved in the company's day-to-day operational management. This matter will not have a significant impact on the operation and daily activities of the board of directors. As of the disclosure date of this announcement, there has been no change in the company's controlling rights, and all work continues to proceed steadily.