Fujian Xingwang Ruijie Communications Co., Ltd. 2025 Annual Report Summary

MaticHoleFiller

2026-03-28 10:11:39

Stock Code: 002396 Stock Abbreviation: StarNet Ruijie Notice No.: Ding 2026-001

I. Important Notice

This annual report summary is derived from the full annual report. To comprehensively understand the company’s operating results, financial condition, and future development plans, investors should carefully read the full annual report published by the media designated by the China Securities Regulatory Commission.

All directors attended the board meeting to review this report.

Non-standard audit opinion notice

□Applicable √Not applicable

Profit distribution plan or capital reserve transfer to share capital plan reviewed by the board

√Applicable □Not applicable

Whether to transfer capital reserve to share capital

√Yes □No

The profit distribution plan approved by this board meeting is: based on 582,864,249 shares, a cash dividend of 2.5 yuan (tax inclusive) will be distributed to all shareholders for every 10 shares, with 0 bonus shares (tax inclusive), and a transfer of 3 shares for every 10 shares to all shareholders from the capital reserve.

The preferred stock profit distribution plan approved by the board for this reporting period

□Applicable √Not applicable

II. Company Basic Information

Company Profile

■

Overview of Main Business or Products During the Reporting Period

In 2025, the company continued to focus on “ICT infrastructure and AI application solutions” as its core business framework, vigorously advancing the transformation and upgrading of the industry, and launched a series of innovative products with market influence, continuously strengthening the existing market and expanding the incremental market. Focusing on network communication infrastructure such as data center networks, optical communications, as well as AI application solutions in fields like faith creation, visual internet, smart spaces, and intelligent manufacturing, the company provides comprehensive empowering services for digital transformation and upgrading across multiple industries including government, operators, internet, and finance. A series of innovative new products were launched, firmly seizing market opportunities for industrial and technological upgrades, providing customers with more in-depth application needs and uniquely competitive solutions.

In 2025, the company achieved operating revenue of 19,156,872,095.46 yuan, a 14.31% increase compared to the same period last year; operating profit was 951,905,672.72 yuan, an increase of 72.88% year-on-year; total profit was 961,631,528.99 yuan, a year-on-year increase of 68.95%; the net profit attributable to shareholders of the listed company was 408,861,465.49 yuan, an increase of 1.05% compared to the same period last year. The progress of the main business during the reporting period is as follows:

(1) In the field of network infrastructure

In the data center field, the company continues to strengthen its competitiveness in high-performance computing networks through technological innovation. A 51.2T CPO switch commercial interconnection solution was released, meeting the growing demand for high-speed interconnection in AI training and ultra-large-scale computing clusters with ultra-high integration, significant energy efficiency improvements, and maintainability design, and providing feasible technical paths for future 800G and 1.6T network upgrades. The newly launched next-generation high-performance 128-port 800G switch focuses on the core needs of computing power infrastructure and aims to build an efficient, green, and intelligent next-generation computing power network base for AI data center customers through innovative architecture design, leading energy-saving technology, and full-cycle service solutions. The 1.6T/800G optical module products were launched to adapt to the data center switch products and overall solutions procured by leading internet customers, providing an economical and efficient way for high-speed interconnection of servers and switches.

In the campus network field, the ultra-simple optical solutions continue to iterate and upgrade, and the industry solutions are constantly enriched. The ultra-simple Ethernet optical network solution 4.0 was released, which further simplifies campus network connections through 1:16 high-density color light and full-link single-fiber technology; the optical link diagnosis capability upgrade further improves network operation and maintenance efficiency; combined with scenario-based in-room network elements, it achieves comprehensive adaptability of Ethernet color light across multiple industries and can be applied to campus network construction in education, healthcare, manufacturing, transportation, government, warehousing, and other industries.

(2) In the field of optical communication infrastructure

The company continues to increase investment in optical communication products and markets, launching self-developed industrial PON solutions, achieving 100% domestically produced hardware and fully self-developed software and hardware, certified by the China Electronics Technology Group, meeting the “highly secure and controllable” standard; the FTTR all-optical smart home solution has been scaled in multiple provinces for China Mobile and China Unicom; in the government and enterprise sector, the FTTO all-optical networking solution has been supplied in scale to multiple provinces for mobile, assisting in enterprise digital transformation; continuously expanding the application boundaries of all-optical networks: upgraded optical gateway products for small and medium optical scenarios were launched, covering hotels, offices, industrial parks, and other scenarios. Relying on the accumulation of optical network technology, the company accelerates its extension into the AI and computing power fields, building a new ecosystem of “connectivity + computing power” at the edge, creating intelligent computing center solutions to meet the AI needs of government and enterprise users of different scales, widely applied in government, finance, education, healthcare, and other fields, empowering the intelligent upgrade and secure and trustworthy development of industries.

(3) AI application solution industry

Faith creation business: The company actively promotes the “Faith Creation + AI” strategy, deepening the full-stack faith creation layout, with technological innovation and ecological collaboration driving the overall enhancement of industrial competitiveness. The Faith Creation SDH media gateway product has been developed to achieve a comprehensive leap from performance to standards, accelerating breakthroughs in the core of the industrial chain; products such as the Faith Creation AI computing power integrated machine have been implemented in key industries such as government, education, and healthcare. In ecosystem cooperation, continuous deepening of collaboration with mainstream ecosystems such as Kirin, Ascend, Kunpeng, and Harmony has been achieved, transitioning from technological application to ecosystem rule construction, comprehensively enhancing influence in the faith creation industrial chain.

Metaverse business: The company innovates across multiple fields such as immersive light and shadow, digital entertainment, and brain-machine healing with AI technology, driving industrial value upgrades. By integrating immersive space and cutting-edge AI technologies, the “Smart Studio Solution” was first launched in the photography industry; in digital entertainment, the Metaverse entertainment system sets an intelligent benchmark for the KTV industry transformation, with Kmi driving strategy through “traffic operation + AI technology,” and self-developed AI SAAS systems leveraging intelligent algorithms to enhance KTV operations; in the healing field, a brain-machine emotional assessment model was released, forming a complete closed-loop healing process from “perception-assessment-intervention-feedback,” with the “thousands of people and thousands of solutions” healing solution implemented in specific scenarios like psychological counseling, health spaces, workplace stress relief, and meditation assistance.

Smart space business: In 2025, the company continues to focus on the state-owned assets and state-owned enterprises real estate industry, constructing intelligent home solutions around high-end smart screen ecosystems, with high-end smart screens as the core, achieving a leap from passive response to proactive service in intelligent interaction; it has been awarded as the most valuable “good house” AI technology residential brand, the most valuable smart space brand, and the KNX China Application Award, among other industry awards, thanks to the joint efforts with Xiamen University and others on the project “Key Technology R&D and Industrialization of Heterogeneous Internet of Things and Intelligent Perception for Multi-Scenario Applications,” winning the first prize in the Fujian Provincial Science and Technology Progress Award.

Visual Internet business: In 2025, StarNet Ruijie continues to delve into the AI + video IoT field, building an integrated architecture of “cloud-network-edge” in response to AI opportunities in operator government and enterprise meetings, deeply integrating large model AI technologies, creating a fully domestic stack base, achieving intelligent closed-loop for the entire process of meetings, and launching a full series and all forms of AI edge products and solutions. The financial market continues to deepen, successfully entering top bank headquarters-level smart screen projects and achieving scaled supply to provincial branches.

Main Accounting Data and Financial Indicators

(1) Main accounting data and financial indicators for the past three years

Does the company need to retrospectively adjust or restate previous year’s accounting data?

□Yes √No

Unit: Yuan

■

(2) Main accounting data by quarter

Unit: Yuan

■

Do the above financial indicators or their totals have significant discrepancies with the financial indicators disclosed in the company’s quarterly reports or semi-annual reports?

□Yes √No

Share Capital and Shareholder Information

(1) Number of common shareholders and preferred shareholders with restored voting rights and the shareholding status of the top 10 shareholders

Unit: Shares

■

Shareholders holding more than 5%, the top 10 shareholders, and the top 10 unrestricted circulating shareholders participating in the securities lending business lending shares situation

□Applicable √Not applicable

Changes in the top 10 shareholders and top 10 unrestricted circulating shareholders due to lending/returning caused by securities lending

□Applicable √Not applicable

(2) Total number of preferred shareholders and shareholding status table of the top 10 preferred shareholders

□Applicable √Not applicable

No preferred shareholders during the reporting period.

(3) Disclose the property rights and control relationship between the company and actual controllers in a flow chart

■

Bonds in Existence as of the Date of Annual Report Approval

□Applicable √Not applicable

III. Important Matters

None.

Stock Code: 002396 Stock Abbreviation: StarNet Ruijie Notice No.: Lin 2026-05

Fujian StarNet Ruijie Communication Co., Ltd.

Announcement of Resolutions of the 19th Meeting of the 7th Board of Directors

The company and all members of the board guarantee that the content of the announcement is true, accurate, and complete, without any false record, misleading statement, or major omission.

I. Board Meeting Convening Situation

The notice of the 19th meeting of the 7th Board of Directors of Fujian StarNet Ruijie Communication Co., Ltd. (hereinafter referred to as “the company”) was sent by email on March 16, 2026. The meeting was held on March 26, 2026, in the conference room on the 22nd floor of Building A, Phase III, StarNet Ruijie Technology Park, No. 33, Xinguang Avenue, Fuzhou High-tech Zone, Fujian Province. Nine directors were supposed to attend, and all nine directors were present. Senior management of the company attended this meeting, which was convened and presided over by Chairman Mr. Ruan Jiayong. The notice, convening, and voting procedures for this meeting comply with the provisions of the “Company Law of the People’s Republic of China” and other relevant laws, administrative regulations, departmental rules, normative documents, and the “Articles of Association” of the company.

II. Board Meeting Review Situation

This meeting voted by on-site written ballot to pass the following resolutions:

(1) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “2025 Annual Work Report of the Board of Directors”

During the reporting period, the company’s board of directors strictly performed its duties assigned by the shareholders’ meeting in accordance with the provisions of the “Company Law,” “Securities Law,” “Shenzhen Stock Exchange Stock Listing Rules,” “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1—Standardized Operations of Main Board Listed Companies,” and other laws and regulations as well as the “Articles of Association,” “Rules of Procedures for Shareholders’ Meetings,” and “Rules of Procedures for Board Meetings.” The board actively promoted the implementation of various resolutions of the shareholders’ meeting.

This proposal still needs to be submitted to the company’s 2025 annual shareholders’ meeting for review. The specific content of the “2025 Annual Work Report of the Board of Directors” can be found on the company’s designated information disclosure website, Giant Tide Information Network (and “Section 4 Corporate Governance” and related content).

Independent directors of the company, Xie Bangsheng, Hong Fangfang, and Zheng Xianghan submitted their “Independent Director Work Reports” at this meeting, and they will report at the company’s 2025 annual shareholders’ meeting. For details, see the company’s designated information disclosure website, Giant Tide Information Network (

The independent directors submitted an “Independent Director Report on Independence Self-Examination” to the board, which assessed the independence of the incumbent independent directors and issued a special opinion. For specific content, see the special report on the independence self-examination situation of independent directors disclosed on Giant Tide Information Network (www.cninfo.com.cn) on the same day.

(2) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “2025 Annual General Manager Work Report”

The company’s General Manager, Mr. Huang Changhong, reported to the board on the company’s operating situation in 2025 and the operating plan for 2026.

Detailed content can be found in “Section 3 Management Discussion and Analysis” of the “2025 Annual Report.”

(3) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “Proposal on the Company’s 2025 Profit Distribution and Capital Reserve Transfer to Share Capital”

According to the audit conducted by Sigma Accounting Firm (Special General Partnership), the consolidated net profit attributable to the shareholders of the listed company for 2025 was 408,861,465.49 yuan. The net profit of the parent company for this year was 206,973,052.24 yuan. In accordance with the relevant provisions of the “Company Law” and “Articles of Association,” the company will not allocate statutory surplus reserves for 2025. Adding the undistributed profits at the beginning of the year of 3,112,021,561.87 yuan and deducting the cash dividends paid for the year 2024 of 144,230,766.75 yuan (originally distributed cash dividends of 146,444,642.25 yuan, with corresponding cash dividends of 2,213,875.50 yuan deducted due to the repurchase and cancellation of restricted stocks that did not meet the exercise conditions), the distributable profits at the end of 2025 amounted to 3,174,763,847.36 yuan.

The proposed profit distribution plan for 2025 is: based on the total number of shares entitled to profit distribution on the record date for the implementation of the distribution plan in the future, a cash dividend of 2.50 yuan (tax inclusive) will be distributed to all shareholders for every 10 shares, with no bonus shares this year, and the remaining undistributed profits will be carried forward to the next year. Based on a total of 585,695,098 shares as of December 31, 2025, minus 2,830,849 shares held in the company’s repurchase account, the basis will be 582,864,249.00 shares, and the expected cash dividend amount is 145,716,062.25 yuan (tax inclusive). If this plan is approved by the shareholders’ meeting, the total cash dividends for 2025 will account for 35.64% of the net profit attributable to the shareholders of the parent company for this year.

The proposed plan for the transfer of capital reserve to share capital for 2025 is: based on the total number of shares of 585,695,098 shares as of December 31, 2025, minus 2,830,849 shares held in the company’s repurchase account, the basis will be 582,864,249 shares, and the company will transfer 3 shares for every 10 shares to all shareholders from the capital reserve, totaling a transfer of 174,859,274 shares, with the transfer amount not exceeding the balance of “capital reserve - capital premium” at the end of the reporting period. After the transfer of share capital, the total share capital of the company will increase to 760,554,372 shares (final registration to be determined by the Shenzhen branch of China Securities Depository and Clearing Co., Ltd.).

This profit distribution proposal will be disclosed until the implementation period of the distribution. If the company’s share capital changes due to convertible bonds conversion, share buybacks, stock option exercises, or the listing of newly issued shares due to refinancing during this period, the implementation will be based on the changed share capital, and the distribution ratio will remain unchanged, with the dividend amount adjusted accordingly. (Note: the shares held by the company through the buyback account do not have the right to participate in the profit distribution and capital reserve transfer to share capital.)

For the content of the “Announcement on the Company’s 2025 Profit Distribution and Capital Reserve Transfer to Share Capital,” please refer to the company-designated information disclosure media, including “Securities Times,” “China Securities Journal,” “Shanghai Securities News,” “Securities Daily,” and Giant Tide Information Network (

This proposal needs to be submitted to the company’s 2025 annual shareholders’ meeting for review.

(4) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “2025 Annual Report and Summary”

The “2025 Annual Report” and “2025 Annual Report Summary” can be found in the announcement disclosed on Giant Tide Information Network (www.cninfo.com.cn) on March 28, 2026; the “2025 Annual Report Summary” can be found in the announcement disclosed on the company-designated information disclosure media, including “Securities Times,” “China Securities Journal,” “Shanghai Securities News,” “Securities Daily,” and Giant Tide Information Network (

The financial information in the “2025 Annual Report” was reviewed and approved by the 15th meeting of the audit committee of the company’s 7th Board of Directors before submission to the board, and this proposal needs to be submitted to the company’s 2025 annual shareholders’ meeting for review.

(5) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “Proposal on Using Part of the Idle Funds for Entrusted Wealth Management”

The company and its subsidiaries plan to use no more than 1 billion yuan of temporarily idle self-owned funds for entrusted wealth management.

For the content of the “Announcement on Using Part of the Idle Funds for Entrusted Wealth Management,” please refer to the company-designated information disclosure media, including “Securities Times,” “China Securities Journal,” “Shanghai Securities News,” “Securities Daily,” and Giant Tide Information Network (

This proposal needs to be submitted to the company’s 2025 annual shareholders’ meeting for review.

(6) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “Proposal on the Company’s Credit Usage and Bill Pool Plan for 2026”

To ensure the liquidity needed for the company’s operations in 2026, it was agreed that the company and its subsidiaries within the consolidated financial statements would apply to banks and other financial institutions for a total comprehensive credit line not exceeding 16.01 billion yuan, including a comprehensive credit limit not exceeding 15.495 billion yuan and a bill pool not exceeding 515 million yuan, mainly used for handling working capital loans, issuing acceptance bills, guarantees, letters of credit, bill discounting, factoring business (without recourse), and supply chain financing (without recourse), internal guarantees for external loans, bill pools, forfaiting, and other businesses. The specific business types, credit limits, and terms are subject to the final approval by each financial institution. The credit limit is not equivalent to the actual financing amount of the company; the specific financing amount is based on the actual funding needs of the company, as determined by the actual financing amount between the company, its subsidiaries, and financial institutions. To ensure the smooth implementation of the company’s financing plan and timely resolution of related issues during the negotiation process, it is requested that the shareholders’ meeting authorize the company to appropriately adjust the actual financing amount with each bank based on the negotiation situation, within the limit of 16.01 billion yuan or its equivalent in foreign currency. The above comprehensive credit limit can be used in a rolling manner from the date of approval by the 2025 annual shareholders’ meeting until the date of the 2026 annual shareholders’ meeting.

This proposal needs to be submitted to the company’s 2025 annual shareholders’ meeting for review.

(7) The resolution passed with 4 votes in favor, 5 abstentions, 0 votes against, and 0 abstentions, approving the “Proposal on the Estimated Daily Related Party Transaction Limit for 2026”

Based on the company’s judgment of the market situation in 2026, it was agreed that the company plans to have daily related party transactions with related parties totaling no more than 120,735,000 yuan in 2026.

Related directors Ruan Jiayong, Wei Hewen, Chen Yong, Qiang Wei, and Hong Xiaoqi abstained from voting.

This proposal has been reviewed and approved by the sixth special meeting of the independent directors of the seventh Board before submission to the board.

For the content of the “Announcement on the Estimated Daily Related Party Transaction Limit for 2026,” please refer to the company-designated information disclosure media, including “Securities Times,” “China Securities Journal,” “Shanghai Securities News,” “Securities Daily,” and Giant Tide Information Network (

This proposal needs to be submitted to the company’s 2025 annual shareholders’ meeting for review.

(8) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “2025 Internal Control Evaluation Report”

Sigma Accounting Firm (Special General Partnership) audited the effectiveness of the internal controls for the company’s financial reports as of December 31, 2025, issuing No. 0779 of the internal control audit report. For detailed content, see the designated information disclosure media Giant Tide Information Network (

This proposal has been reviewed and approved by the 15th meeting of the audit committee of the company’s 7th Board before submission to the board.

The “2025 Internal Control Evaluation Report” can be found on the company-designated information disclosure website, Giant Tide Information Network (

This proposal still needs to be submitted to the company’s 2025 annual shareholders’ meeting for review.

(9) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “2025 Social Responsibility Report”

The “2025 Social Responsibility Report” can be found on the company-designated information disclosure website, Giant Tide Information Network (

(10) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “Proposal on Provisions for Asset Impairment for 2025”

The company and its subsidiaries will make provisions for asset impairment based on actual situations, in compliance with the relevant provisions of the “Enterprise Accounting Standards” and the company’s accounting policies, fairly reflecting the company’s asset status, and agreeing to the current provision for asset impairment.

This proposal has been reviewed and approved by the 15th meeting of the audit committee of the company’s 7th Board before submission to the board.

For the content of the “Announcement on Provisions for Asset Impairment for 2025,” please refer to the company-designated information disclosure media, including “Securities Times,” “China Securities Journal,” “Shanghai Securities News,” “Securities Daily,” and Giant Tide Information Network (

(11) The resolution passed with 9 votes in favor, 0 votes against, and 0 abstentions, approving the “Proposal on the Subsidiary Conducting Foreign Exchange Derivative Hedge Transactions”

To fully utilize the financial derivatives market and effectively reduce the impact of foreign exchange fluctuations on the company and its subsidiaries’ production, operation, and trade, ensuring relative stability in operating performance, the company agrees that its subsidiary, Ruijie Network Co., Ltd., and its subsidiaries plan to engage in derivative trading business.

For the content of the “Announcement on the Subsidiary Conducting Foreign Exchange Derivative Hedge Transactions,” please refer to the company-designated information disclosure media, including “Securities Times,” “China Securities Journal,” “Shanghai Securities News,” “Securities Daily,” and Giant Tide Information Network (

III. Files for Reference

(1) Resolutions of the 19th meeting of the 7th Board of Directors;

(2) Opinions from the sixth special meeting of independent directors of the 7th Board;

(3) Opinions from the 15th meeting of the audit committee of the 7th Board.

This is hereby announced.

Fujian StarNet Ruijie Communication Co., Ltd.

Board of Directors

March 28, 2026

Stock Code: 002396 Stock Abbreviation: StarNet Ruijie Notice No.: Lin 2026-06

Fujian StarNet Ruijie Communication Co., Ltd.

Announcement on the Company’s 2025 Profit Distribution

and Capital Reserve Transfer to Share Capital Proposal

The company and all members of the board guarantee that the content of the announcement is true, accurate, and complete, without any false record, misleading statement, or major omission.

I. Review Procedure

(1) On March 26, 2026, Fujian StarNet Ruijie Communication Co., Ltd. (hereinafter referred to as “the company”) held the 19th meeting of the 7th Board of Directors, which reviewed and approved the “Proposal on the Company’s 2025 Profit Distribution and Capital Reserve Transfer to Share Capital.”

(2) This profit distribution plan still needs to be submitted to the company’s 2025 annual shareholders’ meeting for review and approval, and implementation can only occur after the shareholders’ meeting approves it.

II. Basic Information on the 2025 Profit Distribution and Capital Reserve Transfer to Share Capital Proposal

(1) According to the audit conducted by Sigma Accounting Firm (Special General Partnership), the consolidated net profit attributable to the shareholders of the listed company for 2025 was 408,861,465.49 yuan. The net profit of the parent company for this year was 206,973,052.24 yuan. In accordance with the relevant provisions of the “Company Law” and “Articles of Association,” the company will not allocate statutory surplus reserves for 2025. Adding the undistributed profits at the beginning of the year of 3,112,021,561.87 yuan and deducting the cash dividends paid for the year 2024 of 144,230,766.75 yuan (originally distributed cash dividends of 146,444,642.25 yuan, with corresponding cash dividends of 2,213,875.50 yuan deducted due to the repurchase and cancellation of restricted stocks that did not meet the exercise conditions), the distributable profits at the end of 2025 amounted to 3,174,763,847.36 yuan.

(2) This profit distribution proposal will be disclosed until the implementation period of the distribution. If the company’s share capital changes due to convertible bonds conversion, share buybacks, stock option exercises, or the listing of newly issued shares due to refinancing during this period, the implementation will be based on the changed share capital, and the distribution ratio will remain unchanged, with the dividend amount adjusted accordingly. (Note: the shares held by the company through the buyback account do not have the right to participate in the profit distribution and capital reserve transfer to share capital.)

II. Specific Information on the Cash Dividend Plan

(1) The company’s 2025 dividend plan does not touch on other risk warning situations

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(2) Specific reasons for not touching on other risk warning situations

The company’s net profit for the most recent accounting year is positive, and the undistributed profits at the year-end of both the consolidated financial statements and the parent company’s financial statements are positive. The cumulative cash dividends over the last three accounting years exceed 30% of the average annual net profit for the last three accounting years. The company has not touched on the potential circumstances for other risk warnings as stipulated in Article 9.8.1 of the “Shenzhen Stock Exchange Stock Listing Rules.”

(3) Explanation of the rationality of the profit distribution plan

The company is committed to sustainable, stable, high-quality development and fully values reasonable returns to investors. After comprehensively considering shareholder willingness, external environment, company development strategic planning, profitability, cash flow, and other conditions, reasonable arrangements for profit distribution have been made to ensure the continuity and stability of the profit distribution policy. The company’s proposed profit distribution plan for 2025 complies with the “Articles of Association” and the “Three-Year Shareholder Return Plan (2025-2026)” established cash dividend policy, demonstrating legality, compliance, and rationality, and conforms to the relevant laws and regulations, including the “Self-Regulatory Guidelines for Listed Companies No. 1—Standardized Operations of Main Board Listed Companies” of the Shenzhen Stock Exchange.

III. Files for Reference

Resolutions of the 19th meeting of the 7th Board of Directors.

This is hereby announced.

Fujian StarNet Ruijie Communication Co., Ltd.

Board of Directors

March 28, 2026

Stock Code: 002396 Stock Abbreviation: StarNet Ruijie Notice No.: Lin 2026-07

Fujian StarNet Ruijie Communication Co., Ltd. Announcement on Using Part of the Idle Funds for Entrusted Wealth Management

The company and all members of the board guarantee that the content of the announcement is true, accurate, and complete, without any false record, misleading statement, or major omission.

Important Content Reminder:

Investment Types: Low-risk, liquid, and well-returned wealth management products issued by banks and other financial institutions, including but not limited to structured deposits and bank wealth management products.
Investment Amount: Fujian StarNet Ruijie Communication Co., Ltd. (hereinafter referred to as “the company”) and its subsidiaries will use no more than 1 billion yuan of self-owned idle funds for entrusted wealth management. Within this limit, funds can be used in rolling transactions within twelve months, and the transaction amount at any point during the period (including the amount related to reinvesting the proceeds from the aforementioned investment) must not exceed the investment limit of 1 billion yuan.
Special Risk Reminder: The company and its subsidiaries using idle funds to purchase low-risk wealth management products is a way to enhance the efficiency of idle funds under the premise of controllable risks. The risks are low, but actual returns from entrusted wealth management may be uncertain due to changes in macroeconomic conditions or market fluctuations. Investors should pay attention to investment risks.

I. Overview of External Investment

(1) Investment Purpose

To enhance the efficiency of fund use and increase the level of fund returns, strengthen the company’s profitability, and maximize returns for the company and its shareholders. The company and its subsidiaries will reasonably utilize part of the idle self-owned funds for low-risk wealth management product investments without affecting the normal operation of the company.

(2) Investment Amount

The company and its subsidiaries plan to use no more than 1 billion yuan of idle self-owned funds for low-risk bank wealth management product investments.

Within this limit, funds can be used in rolling transactions within one year, and the transaction amount at any point during the period (including the amount related to reinvesting the proceeds from the aforementioned investments) must not exceed the investment limit of 1 billion yuan.

(3) Investment Method

The company will strictly control risks according to relevant regulations, conduct strict evaluations and screenings of wealth management products, and use idle self-owned funds to purchase low-risk, liquid, and well-returned wealth management products issued by banks and other financial institutions, including but not limited to structured deposits and bank wealth management products.

(4) Investment Duration

Effective for 12 months from the date of approval by the shareholders’ meeting. During the effective period, the company will decide the specific investment duration based on funding conditions and investment plans. When conducting actual investments, the company will timely fulfill disclosure obligations according to relevant laws and regulations.

(5) Source of Funds: The funds used by the company and its subsidiaries are idle self-owned funds, legally and compliantly sourced, and do not use bank credit funds for direct or indirect investments.

This investment wealth management matter does not constitute a related party transaction.

II. Approval Procedure

The above transaction has been reviewed and approved by the 19th meeting of the 7th Board of Directors, and this proposal still needs to be submitted to the company’s 2025 annual shareholders’ meeting for review. This transaction does not constitute a major asset restructuring as defined by the “Administrative Measures for Major Asset Restructuring of Listed Companies,” and does not require approval from relevant departments.

III. Investment Risk Analysis and Risk Control Measures

(1) Investment Risks

The company will choose low-risk bank wealth management products with high security and good liquidity for entrusted wealth management. However, the financial market is greatly affected by macroeconomic conditions. The company will intervene appropriately and in moderation based on economic conditions and changes in the financial market, timely tracking the progress of entrusted wealth management, and strictly controlling risks. However, there is still a risk that market fluctuations may lead to investment returns not meeting expectations.

(2) To address investment risks, the following measures are proposed:

Within the scope authorized by the board of directors and the general manager’s office, the financial manager of the company will be responsible for the approval of investment and wealth management. The financial department of the company will be the daily management department for entrusted wealth management, responsible for reviewing and evaluating entrusted wealth management products, fund transfers, and continuously tracking and supervising the execution of entrusted wealth management activities, implementing various risk control measures. If any risk factors that may affect the safety of the company’s funds are identified during assessments, timely measures will be taken to control investment risks.
The usage and custody of low-risk investment wealth management funds will be supervised daily by the internal audit department, which will conduct audits and verifications of fund usage irregularly. The internal audit department will examine the approval status of wealth management product transactions, actual operating conditions, fund usage, and profit and loss situations, urging the company’s financial department to timely process accounting and verify the accounting processing situation. Independent directors have the right to investigate the company’s wealth management business, and if necessary, more than two independent directors can propose hiring independent external audit institutions to conduct special audits of entrusted wealth management funds; the audit committee has the right to conduct regular or irregular inspections and supervision of the usage of entrusted wealth management funds.
The company has formulated the “Investment Wealth Management Management System,” which details the principles, scope, authority, internal review processes, internal reporting procedures, supervision of fund usage, responsible departments, and responsible persons regarding investment wealth management, effectively preventing investment risks. At the same time, the company will strengthen market analysis and research, strictly implement internal management systems, and rigorously control risks.

IV. Impact of Investment on the Company

(1) The company adheres to the principles of “standardized operations, risk prevention, cautious investment, and value preservation and appreciation.” Under the premise of ensuring the safety of company funds, it will moderately engage in low-risk investment wealth management business using part of idle self-owned funds, which will not affect the normal conduct of the company’s main business.

(2) By conducting moderate low-risk wealth management, the company can achieve certain investment benefits, which can further enhance the overall performance of the company and provide more investment returns for shareholders.

The company and its subsidiaries have followed the necessary legal procedures for using part of the idle self-owned funds, which helps improve fund utilization efficiency and reduce financial costs.

(3) The company will conduct accounting and reporting in accordance with the requirements of accounting standards released by the Ministry of Finance, including “Enterprise Accounting Standards No. 22—Recognition and Measurement of Financial Instruments,” “Enterprise Accounting Standards No. 39—Fair Value Measurement,” and “Enterprise Accounting Standards No. 37—Financial Instruments Presentation.” The accounting method in the annual report will be based on the opinions of the company’s auditing institution.

V. Recent Twelve Months of Wealth Management Product Purchases

As of the date of this announcement, the company has cumulatively used idle self-owned funds to purchase expired bank wealth management products totaling 500 million yuan in the past 12 months. The main situation is as follows:

Unit: Ten Thousand Yuan

■

As of the date of this announcement, the company has cumulatively used idle self-owned funds to purchase bank wealth management products that have not yet expired totaling 250 million yuan in the past 12 months, accounting for 3.5850% of the company’s most recent audited net assets (2025). The main situation is as follows:

Unit: Ten Thousand Yuan

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VI. Files for Reference

Resolutions of the 19th meeting of the 7th Board of Directors.

This is hereby announced.

Fujian StarNet Ruijie Communication Co., Ltd.

Board of Directors

March 28, 2026

Stock Code: 002396 Stock Abbreviation: Star

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