[5-Continuous Board Huaca Co., Ltd.: The company expects that the third quarter performance will continue to decline year-on-year] On September 21, Hua Ci Co., Ltd. (001216.SZ) announced that the deviation from the closing price increase of the company's stock for three consecutive trading days has reached more than 20%, which is an abnormal fluctuation in stock trading. Recently, the British Trade Remedy Agency (TRA) issued an announcement on the British government's official website (GOV.UK), ex officio, to conduct a temporary review of anti-dumping measures on ceramic tableware and kitchen utensils originating in China. After Brexit, the UK took over the original EU's anti-dumping measures against Chinese ceramic tableware and kitchenware. The current effective anti-dumping tax rate is 13.1%-36.1%. The applicable tax rates for different exporters vary. The current anti-dumping tax rate for companies is 18.3%. In view of the fact that the EU has significantly increased the tax rate on similar products to a maximum of 79% in February 2026, the company solemnly reminds investors to pay attention to the risk of the UK following up on the imposition of anti-dumping tariffs. As the European Union's anti-dumping tax on China's daily-use ceramics has been significantly increased from 18.3% to 79%, the 9% export tax rebate rate for daily-use ceramics has been completely cancelled, the continued appreciation of the RMB, and the in-depth adjustment of the liquor industry have continued to affect the company's Vietnam production base. The first phase project is still in the production capacity ramp-up stage. In the short term, the production capacity is limited and it is difficult to hedge against the impact of overseas trade barriers. It is expected that the third quarter performance will continue to decline year-on-year.