Zhezhong Group ZHEZHONG GROUP Stock Abbreviation: Zhezong Shares Stock Code: 002346 Report on the Performance Evaluation of the Accounting Firm in 2025 On December 29, 2025, Shanghai Zhezong Group Co., Ltd. (hereinafter referred to as the "Company") held its first extraordinary general meeting of shareholders in 2025, which approved the "Proposal on Changing the Accounting Firm." Zhonghui Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Zhonghui") was appointed as the company's annual audit institution for 2025. In accordance with the "Administrative Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies" and the "Reminders on How Listed Companies Should Select Accounting Firms," the company has evaluated Zhonghui's performance during the 2025 audit process. Based on the evaluation, the company believes that Zhonghui's qualifications are compliant and effective, its performance maintains independence, it is diligent and responsible, and it has expressed a fair opinion. The specific situation is as follows: I. Basic Information Zhonghui Certified Public Accountants, transformed into a special general partnership in December 2013, with its headquarters located in Hangzhou. It is one of the accounting firms with securities and futures business audit qualifications and has long been engaged in securities services. The chief partner of Zhonghui Certified Public Accountants is Gao Feng, and its registered address is Room 601, Building A, Hualian Times Square, Xinye Road, Shangcheng District, Hangzhou. As of December 31, 2025, Zhonghui Certified Public Accountants had 117 partners and 688 certified public accountants, of whom 312 were certified public accountants who had signed audit reports for securities services. The audited total revenue of Zhonghui Certified Public Accountants in 2025 was RMB 1,004.57 million, of which audit service revenue was RMB 872.29 million and securities service revenue was RMB 472.91 million. In 2025, the company had 205 listed company audit clients, mainly in industries including manufacturing, information transmission, software, and information technology services (as classified by the China Securities Regulatory Commission). The total audit fee was RMB 16.963 million, and the company had 21 audit clients in the same industry among listed companies. II. Practice Status
- Project Team Member Information | Project | Name | CPA Practice Time | Time Started Auditing Listed Companies | Time Started Practicing at This Firm | Time Started Providing Audit Services to This Company | |---|---|---|---|---|---| | Project Partner | Ji Yun | February 2006 | 2001 | April 2025 | 2025 | | Signing CPA | Cai Xuyang | June 2018 | 2016 | March 2025 | 2025 | | Quality Control Reviewer | Zhu Min | June 1995 | 1993 | November 2011 | 2025 |
- Integrity Record The project partner, signing CPA, and project quality control reviewer have no records of criminal penalties, administrative penalties from the CSRC and its派出机构, industry regulatory authorities, supervision and management measures from industry associations, self-regulatory organizations, or disciplinary actions from stock exchanges in the last three years.
- Independence Zhonghui Certified Public Accountants, the project partner, the signing CPA, and the project quality control reviewer have no circumstances that may affect their independence. III. Performance of the Accounting Firm Zhonghui Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Zhonghui"), in accordance with the "Audit Service Agreement," the "Chinese Certified Public Accountants Audit Standards," and other practice regulations, and the company's 2025 annual report work arrangements, audited the company's 2025 financial report and the effectiveness of the company's internal control over financial reporting as of December 31, 2025. It also investigated the company's non-operating fund occupation and other related party transactions and issued a special report. After the audit, Zhonghui concluded that the company's financial statements were prepared in all material respects in accordance with the requirements of the Accounting Standards for Business Enterprises, and fairly presented the consolidated and parent company's financial position as of December 31, 2025, and the consolidated and parent company's operating results and cash flows for the year 2025. The company maintained effective internal control over financial reporting and non-financial reporting in all material respects in accordance with the "Basic Norms for Enterprise Internal Control" and other relevant regulations. Zhonghui issued a standard unqualified audit report. During the 2025 annual audit process, Zhonghui formulated a comprehensive, reasonable, and operable audit work plan based on the company's service needs and the actual situation of the audited entity. The audit work focused on key audit matters of the audited entity, including revenue recognition, measurement and recognition of other non-current financial assets, and provision/reversal of bad debts for accounts receivable. Zhonghui fully cooperated with the company's audit work, fully met the company's reporting and disclosure deadlines, and completed all tasks on schedule according to the planned arrangements. Zhonghui conducted in-depth communication with the company's management and the audit committee on significant accounting and audit matters, reached a consensus on significant accounting and audit matters, and had no differences in opinion. IV. Evaluation Conclusion After review and evaluation, the company believes that Zhonghui's practice qualifications and quality management are compliant and effective. During the provision of audit services to the company, it has maintained sufficient independence and professionalism, been diligent and responsible, and expressed a fair opinion. Shanghai Zhezong Group Co., Ltd. Board of Directors April 28, 2026