Kairuide Holdings Co., Ltd.
Board of Directors' Special Explanation on the 2024 Qualified Audit Report with Emphasis Paragraph
Ernst & Young Hua Ming Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Ernst & Young") audited the 2024 financial statements of Kairuide Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Kairuide") and issued an unqualified audit report with an emphasis paragraph (Report No. You Zhen Shen Zi [2025] 0302) and a special explanation on the unqualified audit report with an explanatory note for the 2024 financial statements of Kairuide Holdings Co., Ltd. (Report No. You Zhen Zhuan Shen Zi [2025] 0065). In accordance with the requirements of the China Securities Regulatory Commission's "Rules for Information Disclosure by Publicly Offered Securities Companies No. 14 — Handling of Non-Standard Audit Opinions and Related Matters" and the "Shenzhen Stock Exchange Stock Listing Rules," the relevant matters are explained as follows:
I. Content of the Emphasis Paragraph in the 2024 Financial Statement Audit Report
Ernst & Young audited the Company's 2024 financial statements and issued an unqualified audit report with an emphasis paragraph. The emphasis paragraph is as follows:
We remind financial statement users to pay attention to Note XVII, "Other Important Matters," of the financial statements. Due to alleged information disclosure violations and illegal acts, the Company received a "Notice of Filing a Case" (Case Filing Notice No. 00042023006) from the China Securities Regulatory Commission on August 29, 2023. As the investigation is ongoing, the specific impact on the Company's financial statements is currently uncertain.