Fujian Nanping Taiyang Cable Co., Ltd.
Special Explanation on Non-Operating Fund Occupation and Other Related Party Fund Transactions
To the Board of Directors of Fujian Nanping Taiyang Cable Co., Ltd.:
We have been engaged to audit the consolidated and parent company balance sheets of Fujian Nanping Taiyang Cable Co., Ltd. (hereinafter referred to as "Taiyang Cable") as of December 31, 2025, and the consolidated and parent company income statements, cash flow statements, and statements of changes in owners' equity for the year ended December 31, 2025. We issued a standard unqualified audit report with report number Huaxing Shen Zi [2026] 25014200016 on April 8, 2026.
In accordance with the requirements of the China Securities Regulatory Commission's "Supervision Guidelines for Listed Companies No. 8 - Regulatory Requirements for Listed Companies' Fund Transactions and External Guarantees" and the provisions of the Shenzhen Stock Exchange's "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 - Business Handling," the management of Taiyang Cable has prepared the attached summary table of non-operating fund occupation and other related party fund transactions for the year 2025 (hereinafter referred to as the "Summary Table").
It is the responsibility of Taiyang Cable's management to prepare and disclose the Summary Table truthfully, accurately, and completely. We have cross-checked the information in the Summary Table with the accounting data and audited financial statements that we reviewed during our audit of Taiyang Cable's 2025 financial statements. We found no material inconsistencies in all aspects. In addition to the audit procedures related to related party transactions performed during the audit of Taiyang Cable's 2025 financial statements, we have not performed any additional audit procedures on the information contained in the Summary Table. To better understand Taiyang Cable's non-operating fund occupation and other related party fund transactions, the attached Summary Table should be read in conjunction with the audited financial statements.