DAJIN Heavy Industry Co., Ltd. (DAJIN) has adopted new accounting policies following the Ministry of Finance’s release of “Interpretation No. 20 of the Accounting Standards for Business Enterprises” (Cai Kuai [2026] No. 7), issued in June 2026.

The interpretation, effective immediately upon promulgation, introduces two key requirements: 1) reassessment of contractual cash-flow characteristics of financial assets; and 2) specific accounting treatment and disclosure rules when a currency lacks exchangeability.

Management stated that the policy update, implemented prospectively for transactions occurring from 1 January 2026 to the effective date, does not require approval from the board or shareholders. According to the announcement, the revisions will: • objectively and fairly reflect DAJIN’s financial position and operating results; • leave the company’s financial position, operating results and cash-flow statements materially unchanged; and • involve no retrospective restatement of prior-year figures.

All other existing accounting practices under the “Accounting Standards for Business Enterprises – Basic Standards” remain in force. The board confirmed that the change will not harm shareholder interests.

The announcement was authorized by Chairman and Executive Director Mr. Jin Xin on 21 August 2026.