Evaluation Report on the Performance of the Accounting Firm and Audit Committee for Longyuan Power in 2025
According to the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Corporate Governance Guidelines for Listed Companies," "Management Measures for the Appointment of Accounting Firms by State-owned Enterprises and Listed Companies," "Self-Regulatory Guidelines No. 1 for Listed Companies on the Shenzhen Stock Exchange," "Securities Listing Rules of Hong Kong Exchanges and Clearing Limited," the Articles of Association of Longyuan Power Group Co., Ltd. (hereinafter referred to as "the Company"), and the "Rules of Procedure for the Audit Committee of Longyuan Power Group Co., Ltd." (hereinafter referred to as "the Audit Committee Rules"), the Audit Committee of the Board of Directors of Longyuan Power Group Co., Ltd. (hereinafter referred to as "the Company") has diligently fulfilled its duties. The following is the report on the evaluation of the performance of the accounting firm for the year 2025 and the oversight responsibilities of the Audit Committee.
I. Basic Information of the Accounting Firm
(A) Domestic Accounting Firm Information
- Basic Information
- Firm Name: Zhongshen Zhonghuan Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Zhongshen Zhonghuan" or "the Firm")
- Establishment Date: Founded in 1987, Zhongshen Zhonghuan is one of the first large accounting firms in China approved to engage in securities and futures-related business and financial auditing. According to the list of accounting firms registered for securities services published by the Ministry of Finance and the China Securities Regulatory Commission, Zhongshen Zhonghuan is qualified to audit the Company.
- Organizational Form: Special General Partnership
- Registered Address: 17-18th Floor, Changjiang Industrial Building, No. 166 Zhongbei Road, Fruit Lake Street, Wuchang District, Wuhan, Hubei Province.
- Chief Partner: Shi Wenxian
As of the end of 2025, Zhongshen Zhonghuan had 237 partners, 1,306 registered accountants, and 723 registered accountants who have signed securities service audit reports. In 2024, the Firm's total audited revenue was 2,171,855,700 yuan, with audit service revenue of 1,834,717,100 yuan and securities service revenue of 583,650,700 yuan. In 2024, Zhongshen Zhonghuan audited 244 listed company clients, primarily in manufacturing, wholesale and retail, real estate, electricity, heat, gas, and water production and supply, agriculture, forestry, animal husbandry, fishery, information transmission, software and information technology services, mining, and cultural, sports, and entertainment industries.
- Investor Protection Capability Zhongshen Zhonghuan purchases professional liability insurance annually based on its business revenue scale and supplements it with a professional risk fund, with a cumulative compensation limit of 800 million yuan, which has not yet been used, allowing it to bear civil liability for audit failures. In the past three years, there have been no civil lawsuits related to its professional conduct that resulted in civil liability.