Securities Code: 001255 Securities Abbreviation: Bofei Electric Announcement No.: 2026-034
Zhejiang Bofei Electric Co., Ltd.
Announcement on the Proposed Reappointment of the Company's Audit Institution for the Year 2026
The company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
Special Reminder: The reappointment of the audit institution complies with the provisions of the "Management Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies" (Cai Kuai [2023] No. 4) issued by the Ministry of Finance, the State-owned Assets Supervision and Administration Commission of the State Council, and the China Securities Regulatory Commission.
Zhejiang Bofei Electric Co., Ltd. (hereinafter referred to as "the Company") held the 27th meeting of the third board of directors on April 27, 2026, and reviewed and approved the proposal on the proposed reappointment of the Company's audit institution for the year 2026. Given that Lixin Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Lixin") diligently performed its auditing duties in the 2025 fiscal year, adhering to the professional standards of independence, objectivity, and fairness, and successfully completed the audit work entrusted by the Company, contributing to the improvement of the Company's management level. The Company agrees to propose the reappointment of Lixin as the Company's financial audit institution and internal control audit institution for the year 2026, with a term of one year.
This proposal is subject to the approval of the Company's shareholders' meeting, and the relevant matters are announced as follows:
I. Basic Information of the Proposed Reappointed Audit Institution
(1) Institution Information
- Basic Information
Lixin Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Lixin") was founded in Shanghai in 1927 by the accounting master Dr. Pan Xulun, resumed operations in 1986, and became the first special general partnership accounting firm in the country to complete its restructuring in 2010. Its registered address is in Shanghai, and the chief partner is Mr. Zhu Jiandi. Lixin is a member of the international accounting network BDO and has long been engaged in securities service business. Before the implementation of the new Securities Law, it held licenses for securities and futures business, has qualifications for auditing H shares, and is registered with the Public Company Accounting Oversight Board (PCAOB) in the United States.
As of the end of 2025, Lixin had 300 partners, 2,523 certified public accountants, and a total of 9,933 employees, with 802 certified public accountants having signed audit reports for securities service businesses.
Lixin's business revenue for 2025 (unaudited) was 5 billion yuan, of which audit business revenue was 3.672 billion yuan, and securities business revenue was 1.505 billion yuan.
In 2025, Lixin provided annual report audit services for 770 listed companies, with audit fees amounting to 916 million yuan, and had 66 audit clients in the same industry.
2. Investor Protection Capability
As of the end of 2025, Lixin had set aside a professional risk fund of 171 million yuan, and the cumulative compensation limit of the purchased professional insurance was 1.05 billion yuan, which can cover civil liability arising from audit failures.
In the past three years, the situation regarding civil liabilities in relation to professional conduct:
| Litigation (Arbitration) | Case | Amount |
|---|---|---|
| Some investors filed civil lawsuits against Jinya Technology and Lixin for securities false statement liability disputes. According to the effective judgment made by the competent people's court, Jinya Technology partially bears the compensation responsibility for the investor losses amounting to 5 million yuan, which is 12.29% of the 2014 annual report. Lixin bears joint liability. The professional insurance purchased by Lixin is sufficient to cover the compensation amount, and all effective judgments have been executed. |