Special Audit Report
To the Shareholders of Huaxun Fangzhou Co., Ltd.:
We were engaged by Huaxun Fangzhou Co., Ltd. (hereinafter referred to as "Huaxun Fangzhou") to conduct a special audit of the accompanying "2021 Operating Revenue Deduction Report" (hereinafter referred to as the "Deduction Report") prepared by Huaxun Fangzhou's management, based on our audit of Huaxun Fangzhou's consolidated and company balance sheets as of December 31, 2021, consolidated and company income statements for 2021, consolidated and company cash flow statements, consolidated and company statements of changes in owners' equity, and related financial statement notes.
I. Management's Responsibility
In accordance with the requirements of the "Shenzhen Stock Exchange Stock Listing Rules (Revised December 2020)" (hereinafter referred to as the "Listing Rules"), Huaxun Fangzhou prepared the Deduction Report. It is Huaxun Fangzhou's management's responsibility to design, implement, and maintain internal controls related to the preparation and presentation of the Deduction Report, to ensure that the Deduction Report is fairly prepared and externally disclosed based on an appropriate preparation basis, and to ensure its truthfulness, legality, and completeness.
II. Auditor's Responsibility
Our responsibility is to express an audit opinion on the Deduction Report prepared by Huaxun Fangzhou's management based on our audit work. We performed the audit work in accordance with "Other Assurance Services – Assurance Engagements Other Than Audits or Reviews of Historical Financial Information" (No. 3101) of the Chinese Certified Public Accountants. This standard requires us to comply with professional ethics, plan and perform the audit work to obtain reasonable assurance about whether the Deduction Report is prepared in all material respects in accordance with the requirements of the Listing Rules. Based on our audit of the financial statements, we performed audit procedures, including verification, inquiry, and examination of accounting records, as we deemed necessary, in conjunction with Huaxun Fangzhou's actual situation. We believe that our audit work provides a reasonable basis for our audit opinion.