Special Statement on the Elimination of Non-Standard Matters from the First Half of 2025
To the Shareholders of KaiRiDe Holdings Co., Ltd.:
We were engaged to audit the 2025 annual financial statements of KaiRiDe Holdings Co., Ltd. (hereinafter referred to as "KaiRiDe Company"), including the consolidated and company balance sheets as of December 31, 2025, the consolidated and company income statements, consolidated and company cash flow statements, consolidated and company statements of changes in owners' equity, and related financial statement notes. We issued a standard unqualified audit report (ZhenQing Audit [2026] No. 0027) on February 9, 2026. Our audit was conducted in accordance with Chinese Certified Public Accountants Auditing Standards.
In accordance with the requirements of the China Securities Regulatory Commission's "Guideline for Application of Regulatory Rules – Auditing Type No. 1," we provide the following explanation regarding the elimination of non-standard matters from the previous period:
I. Details of Non-Standard Matters from the Previous Period
The consolidated and company balance sheets as of December 31, 2024, the consolidated and company income statements, cash flow statements, statements of changes in owners' equity, and related financial statement notes of KaiRiDe Company were audited by UniTax ZhenQing CPA LLP (Special General Partnership). An unqualified opinion with an emphasis of matter paragraph was issued on April 23, 2025 (ZhenQing Audit [2025] No. 0302). The content of the emphasis of matter was as follows: