Selection System for Accounting Firms

Chapter 1 General Principles

Article 1

To standardize the selection of accounting firms by Zhejiang Bofei Electric Co., Ltd. (hereinafter referred to as "the Company"), improve the quality of financial information, and effectively protect shareholder interests, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Management Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies," "Shenzhen Stock Exchange Listing Rules," and the Company's Articles of Association (hereinafter referred to as "the Articles").

Article 2

The term "selection of accounting firms" in this system refers to the Company's engagement of accounting firms to express audit opinions on the Company's financial accounting reports, issue audit reports, and internal control reports, in accordance with relevant laws and regulations. The Company may also refer to this system for engaging accounting firms for other statutory audit services beyond financial accounting report audits.

Article 3

The hiring or dismissal of accounting firms by the Company must be reviewed and approved by the Audit Committee of the Board of Directors (hereinafter referred to as "the Audit Committee") and submitted to the Board of Directors for consideration, with the final decision made by the shareholders' meeting. The Company shall not engage accounting firms to conduct audit services before the Board of Directors and shareholders' meeting have reviewed the matter.

Article 4

The Company's controlling shareholders and actual controllers shall not designate accounting firms to the Company before the Board of Directors and shareholders' meeting have reviewed the matter, nor shall they interfere with the Audit Committee's independent review responsibilities.

Chapter 2 Requirements for Accounting Firm Quality

Article 5

The accounting firms selected by the Company must meet the following conditions:

1. Possess the qualifications and conditions required by the China Securities Regulatory Commission and relevant national industry authorities to conduct securities and futures-related business;

2. Have a fixed workplace, a sound organizational structure, and a complete internal management and control system;

3. Be familiar with national laws, regulations, rules, and policies related to financial accounting;

4. Have experience in auditing listed companies and certified public accountants capable of completing audit tasks and ensuring audit quality;

5. Diligently comply with laws, regulations, rules, and policies related to financial audits, and have a good social reputation and record of professional quality;

6. The certified public accountants responsible for the Company's financial statement audits and signing the audit reports must not have received administrative penalties from regulatory authorities for violations of securities and futures practices in the past three years;

7. Meet other conditions required by national laws, regulations, rules, or normative documents.

Chapter 3 Procedures for Selecting Accounting Firms

Article 6

The Audit Committee, a majority of independent directors, or more than one-third of the directors have the right to submit proposals for the selection of accounting firms to the Board of Directors.

Article 7

The Audit Committee is responsible for the selection of accounting firms and supervising the conduct of their audit work. The Audit Committee shall earnestly perform the following duties:

1. Develop policies, processes, and related internal control systems for selecting accounting firms as authorized by the Board of Directors;

2. Propose to initiate the selection of accounting firms;

3. Review selection documents, determine evaluation factors and specific scoring criteria, and supervise the selection process;

4. Propose the accounting firms to be selected and the audit fees, submitting them for decision-making;

5. Supervise and evaluate the audit work of the accounting firms;

6. Submit an annual evaluation report on the performance of the engaged accounting firms and a report on the Audit Committee's supervisory responsibilities to the Board of Directors;

7. Be responsible for other matters related to the selection of accounting firms as stipulated by laws and regulations, the Articles, and authorized by the Board of Directors.