LRE LEAD REAL ESTATE CO., LTD

“BALANCE June 30, 2023, as restated 12,498,900 344,145 2,557,854 ( 154,121 ) ( 6,769 ) 21,955 2,763,064”

“Based on this evaluation, our management concluded that our internal control over financial reporting was ineffective as of June 30, 2026.”

“Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of June 30, 2026, our disclosure controls and procedures were not effective due to the material weaknesses in our internal control over financial reporting described below.”

“We are in the process of developing sufficient internal controls over financial reporting, including IT general controls, and maintaining working papers with sufficient evidence in a timely manner.”

“We are still in the process of designing entity level controls, including deploying internal regulations or rules in relation to areas such as accounting, evaluation of internal control over financial reporting, enterprise risk management, and budget controls.”

“Therefore, management concluded that as of June 30, 2026, our internal control over financial reporting was ineffective.”

“(ii) we are in the process of developing sufficient internal controls over financial reporting, including IT general controls, and maintaining working papers with sufficient evidence in a timely manner.”

“(i) we are still in the process of designing entity level controls, including deploying internal regulations or rules in relation to areas such as accounting evaluation of internal control over financial reporting, enterprise risk management, and budget controls”