Notice to Shareholders

Dear Shareholders,

First and foremost, we sincerely apologize for the concern caused by the recent designation of HIGEN RNM Co., Ltd. (hereafter "The Company") as an Investment Precaution Stock Issue.

Following the external audit for the fiscal year 2025, the Company received an unqualified (clean) audit opinion on its financial statements. However, with respect to the Internal Control over Financial Reporting (ICFR), an adverse opinion was issued due to a deficiency identified in the closing control process related to income tax accounting.

More specifically, the external auditor identified that the tax effect of KRW 11,838 million associated with gains on the disposal of treasury stock had been incorrectly recognized as income tax expense. Under applicable accounting standards, this amount should have been recognized directly in equity as an offset against gains on the disposal of treasury stock.

In response, the Company has corrected the financial statements. As a result of this adjustment, the net loss decreased from KRW 18,500 million to KRW 6,662 million, while unappropriated retained earnings increased from KRW 20,586 million to KRW 32,424 million.

We would like to emphasize that no additional deficiencies in internal controls were identified beyond this matter. The Company's fundamentals remain unchanged, and its business operations continue without disruption.

We once again extend our sincere apologies and will take this opportunity to further strengthen our internal control framework and enhance transparency, ensuring clear and consistent communication with our shareholders.

Looking ahead, the Company will continue to advance its humanoid actuator business beyond component-level supply toward becoming a "Humanoid Hardware Solution Provider", encompassing the entire robotic drivetrain, and will strive to meet and exceed shareholder expectations.

For reference, a summary of the financial statements before and after the tax accounting adjustment is provided below.

(Unit: KRW million)

구분	Non-Consolidated			Consolidated
	Before	After	Diff.	Before	After	Diff.
Assets	165,205	165,205	-	166,522	166,522	-
Liabilities	60,780	60,780	-	59,593	59,593	-
Net Assets	104,425	104,425	-	106,929	106,929	-
Revenue	73,212	73,212	-	73,544	73,544	-
Operating Income(Loss)	(8,468)	(8,468)	-	(8,909)	(8,909)	-
Profit(Loss) before Income Tax	(9,337)	(9,337)	-	(9,774)	(9,774)	-
Income Tax Expense(Benefit)	9,163	(2,675)	(11,838)	9,165	(2,673)	(11,838)
Net Income(Loss)	(18,500)	(6,662)	11,838	(18,939)	(7,101)	11,838