HUAXING CERTIFIED PUBLIC ACCOUNTANTS LLP
Address: 6-9/F Block B, 152 Hudong Road, Fuzhou, Fujian, China Tel: 0591-87852574 Fax: 0591-87840354 Http://www.fjhxcpa.com Postcode: 350003
Regarding Shenzhen Zhonghua Bicycle (Group) Co., Ltd. Special Explanation on Non-Operating Fund Occupation and Other Related Party Fund Transactions in 2025
To all shareholders of Shenzhen Zhonghua Bicycle (Group) Co., Ltd.:
We were entrusted to audit the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements, consolidated and parent company cash flow statements, and the consolidated and parent company statements of changes in owners' equity and notes to the financial statements of Shenzhen Zhonghua Bicycle (Group) Co., Ltd. (hereinafter referred to as "the Company") for the year 2025, in accordance with the "Chinese Certified Public Accountants Auditing Standards." We issued an unqualified audit report with report number Huaxing Shen Zi [2026] 25016130011 on April 17, 2026.
In accordance with the requirements of the "Supervision Requirements for Listed Companies on Fund Transactions and External Guarantees" (CSRC Announcement [2022] No. 26) issued by the China Securities Regulatory Commission, the Company has prepared the attached summary table of non-operating fund occupation and other related party fund transactions for Shenzhen Zhonghua Bicycle (Group) Co., Ltd. in 2025 (hereinafter referred to as the "Summary Table").
The responsibility for the accurate preparation and public disclosure of the Summary Table and ensuring its truthfulness, legality, and completeness rests with the Company's management. We have cross-checked the information contained in the Summary Table with the accounting data and relevant content of the audited financial statements that we reviewed during our audit of the Company's 2025 financial reports. No inconsistencies were found in any material aspect. In addition to the audit procedures performed for the 2025 financial statement audit of the Company concerning related party transactions, we have not performed any additional audit procedures on the information contained in the Summary Table. To better understand the fund occupation by the Company's controlling shareholder and other related parties, the attached Summary Table should be read in conjunction with the audited financial statements.