Report on the Evaluation of the Performance of the Accounting Firm for 2025 by the Audit Committee of the Board of Directors
According to the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Guidelines for the Governance of Listed Companies," "Self-Regulatory Guidelines No. 1 for Listed Companies on the Shenzhen Stock Exchange," and the Articles of Association of Yunnan Baiyao Group Co., Ltd. (hereinafter referred to as "the Company"), as well as the "Working Procedures of the Audit Committee of the Board of Directors," the Audit Committee of the Board of Directors has diligently fulfilled its responsibilities. The following is the report on the evaluation of the performance of the accounting firm for the 2025 fiscal year and the execution of supervisory duties:
I. Basic Information of the Accounting Firm for the 2025 Annual Audit
(1) Basic Information of the Accounting Firm
Tianjian Certified Public Accountants (Special General Partnership) was established in December 1983 and is one of the first national large-scale accounting audit service institutions with A+H share enterprise audit qualifications, founded by a group of senior certified public accountants. It has ranked among the top three domestic firms for several consecutive years and is among the top twenty globally. Tianjian has long been engaged in securities services and held securities and futures business licenses before the implementation of the new Securities Law. It has H-share enterprise audit qualifications and is included in the list of audit firms for central enterprises, having registered with the Public Company Accounting Oversight Board (PCAOB) in the United States. As of the end of 2025, Tianjian has 250 partners, 2,363 certified public accountants, and 954 certified public accountants who have signed audit reports for securities services, making it one of the most comprehensive accounting firms in China.
(2) Procedures for Appointing the Accounting Firm
According to the "Management Measures for the Appointment of Accounting Firms by State-owned Enterprises and Listed Companies," it is stipulated that "state-owned enterprises shall not consecutively appoint the same accounting firm for more than 8 years." Given that Zhongzheng Zhonghuan Certified Public Accountants (Special General Partnership) has reached the maximum term for providing audit services to the Company, the Company has changed its accounting firm to ensure the independence and objectivity of the audit work in accordance with relevant laws and regulations. Zhongzheng Zhonghuan Certified Public Accountants issued a standard unqualified audit report for the Company's financial report and internal control for the 2024 fiscal year, fulfilling the responsibilities of auditors and internal control audit institutions. The Company has fully communicated with the previously appointed Zhongzheng Zhonghuan Certified Public Accountants regarding the change, and the original accounting firm has expressed its willingness to continue cooperation and has acknowledged the change without objection.