Haining China Leather City Co., Ltd.
Special Report on Non-Operating Fund Occupation and Other Related Party Fund Transactions
To the Shareholders of Haining China Leather City Co., Ltd.:
We have audited the financial statements of Haining China Leather City Co., Ltd. (hereinafter referred to as "Haining China Leather City Co., Ltd.") for the year ended December 31, 2025, including the consolidated and parent company balance sheets, consolidated and parent company income statements, consolidated and parent company cash flow statements, consolidated and parent company statements of changes in owners' equity, and related financial statement notes. We issued an unqualified opinion on April 14, 2026, with the report number Xin Shi Bao Zi (2026) No. ZF10257.
The management of Haining China Leather City Co., Ltd. prepared the accompanying consolidated statement of non-operating fund occupation and other related party fund transactions for 2025 (hereinafter referred to as the "Consolidated Statement") in accordance with the "Supervision Guidelines for Listed Companies No. 8 – Supervision Requirements for Fund Transactions and External Guarantees of Listed Companies" (CSRC Announcement [2022] No. 26) and the "Self-Regulatory Guidelines for Listed Companies No. 1 – Business Operations" of the Shenzhen Stock Exchange.
It is the responsibility of the management of Haining China Leather City Co., Ltd. to prepare and ensure the truthfulness, accuracy, and completeness of the Consolidated Statement. We have cross-checked the information in the Consolidated Statement with the accounting materials audited during our audit of Haining China Leather City Co., Ltd.'s 2025 financial statements and the disclosures in the audited financial statements. We found no material inconsistencies.