Hainan Coconut Island (Group) Co., Ltd. Fourth Risk Warning Announcement Regarding Possible Delisting of Company Stock

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Stock abbreviation: *ST Coconut Island Stock code: 600238 Number: 2026-012

Hainan Coconut Island (Group) Co., Ltd.

Fourth Risk Warning Announcement Regarding Possible Delisting of the Company’s Stock

The company’s board of directors and all directors guarantee that the content of this announcement does not contain any false records, misleading statements, or major omissions, and bear individual and joint responsibility for its authenticity, accuracy, and completeness.

Important Content Highlights:

● Hainan Coconut Island (Group) Co., Ltd. (hereinafter referred to as “the Company”) has its stock risk warning and other risk warnings implemented on May 6, 2025, due to its 2024 annual operating revenue being less than 300 million yuan and a net loss, and because the audit firm issued a negative opinion on the company’s 2024 internal control audit report. Additionally, the company’s net profit before and after non-recurring gains and losses for the last three consecutive fiscal years (2022-2024) is negative, and the audit report on the latest fiscal year’s financial statements indicates uncertainty about the company’s ability to continue operations.

● If in 2025, the company experiences circumstances as stipulated in Article 9.3.7 of the Shanghai Stock Exchange Listing Rules, including if the company’s audited total profit, net profit, or net profit after excluding non-recurring gains and losses is negative and revenue is below 300 million yuan, the company’s stock may be delisted after the 2025 annual report is disclosed.

● According to the special explanation issued by the annual audit firm regarding the elimination of delisting risk warning, the audit firm is currently verifying the company’s 2025 terminal sales and return situations and conducting further audit procedures. For companies with negative opinions on their 2024 internal control audit reports, internal control effectiveness tests are being performed on dealer management. If sufficient appropriate audit evidence cannot be obtained through verification or audit procedures, the audit firm may issue a non-unqualified opinion on the company’s 2025 financial statements or internal control. If the 2025 audited financial report is issued with a qualified, disclaimer, or adverse opinion, or if internal control is similarly qualified or adverse, the company’s stock may be delisted after the 2025 annual report is disclosed.

1. Reasons for Possible Delisting

On April 30, 2025, the company disclosed the “Announcement on Implementing Delisting Risk Warning and Other Risk Warnings and Trading Suspension” (Announcement No.: 2025-017). Due to the company’s audited net profit before and after non-recurring gains and losses in 2024 being negative, and revenue excluding unrelated business income and non-substantive income being below 300 million yuan, combined with a negative opinion on the 2024 internal control audit, and the company’s net profit for the last three consecutive fiscal years (2022-2024) being negative, and the latest fiscal year’s financial report indicating uncertainty about ongoing operations, the company’s stock was risk-warned and flagged for other risks on May 6, 2025.

Preliminary estimates by the company’s finance department suggest that the total profit for 2025 will be approximately -25 million yuan; net profit attributable to shareholders of the listed company is expected to be about -29 million yuan; net profit after excluding non-recurring gains and losses is expected to be about -23 million yuan. Revenue is estimated at 370 million yuan, with revenue excluding unrelated business income and non-substantive income at 350 million yuan. The net assets attributable to shareholders at the end of 2025 are expected to be 80 million yuan. As of the date of this announcement, the company’s 2025 annual report audit is ongoing, and final financial data will be based on the officially disclosed audited 2025 annual report.

If the audited total profit, net profit, or net profit after excluding non-recurring gains and losses for 2025 is negative and revenue is below 300 million yuan, the company’s stock may be delisted after the 2025 annual report is disclosed.

According to the special explanation issued by the audit firm, they are currently verifying the company’s 2025 terminal sales and return situations and conducting tests on the internal control related to dealer management that received a negative opinion in 2024. If sufficient audit evidence cannot be obtained, the audit firm may issue a non-unqualified opinion on the company’s 2025 financial statements or internal control. If the 2025 financial statements are qualified, disclaim, or adverse, or internal control is similarly qualified or adverse, the stock may be delisted after the 2025 annual report.

Per the Shanghai Stock Exchange Listing Rules, if in 2025 the company experiences any of the following, its stock will be delisted:

(1) Audited total profit, net profit, or net profit after excluding non-recurring gains and losses is negative, and revenue is below 300 million yuan, or if after restatement, these figures are negative with revenue below 300 million yuan;

(2) Audited net assets at the end of the period are negative, or after restatement, net assets are negative;

(3) The audited financial report receives a qualified, disclaimer, or adverse opinion;

(4) The internal control audit report is qualified or adverse, or if the company fails to disclose the internal control audit report as required, except in cases of bankruptcy reorganization, restructuring, or major asset restructuring where disclosure is not possible under relevant regulations;

(5) Failing to disclose the annual report within the statutory deadline;

(6) More than half of the directors cannot guarantee the truthfulness, accuracy, and completeness of the disclosed annual report, and fail to correct within the statutory deadline.

2. Disclosure of Previous Delisting Risk Warning Announcements

According to the Shanghai Stock Exchange Listing Rules, the company must disclose a risk warning announcement of possible delisting within one month after the end of the fiscal year in which the risk warning is implemented, and every 10 trading days from the first disclosure until the annual report is disclosed. This is the company’s fourth risk warning announcement.

3. Other Matters

The company reminds investors that all information is based on announcements published on designated information disclosure media and the Shanghai Stock Exchange website. Investors are advised to exercise caution and be aware of investment risks.

This announcement is made by the board of directors of Hainan Coconut Island (Group) Co., Ltd.

March 19, 2026