Special Statement on the Elimination of Matters Leading to Non-Standard Audit Opinions for Guangdong Gaole Co., Ltd. for the Previous Year
Special Audit Report No. [2026]0154
To the Shareholders of Guangdong Gaole Co., Ltd.:
We were engaged to audit the 2025 financial statements of Guangdong Gaole Co., Ltd. (hereinafter referred to as "Gaole Shares") and issued a standard unqualified audit report, [2026]0149, on April 27, 2026.
In accordance with the requirements of the China Securities Regulatory Commission's "Guidelines for the Application of Regulatory Rules — Audit Type No. 1," we provide the following explanation on the elimination of matters that led to a non-standard audit opinion in the previous year:
I. Details of Matters Leading to Non-Standard Audit Opinions in the Previous Year
On April 24, 2025, the audit report on the company's 2024 financial statements issued by Lixin Certified Public Accountants (Special General Partnership) (Xin Cai Shi Bao Zi [2025] No. ZA12014) included a paragraph emphasizing the following:
"We draw the attention of financial statement users to Note XIII, Commitments and Contingent Matters (II) 1 (1), which states that due to the performance compensation obligor's failure to fulfill its performance compensation obligations, Gaole Shares filed a civil lawsuit with the Intermediate People's Court of Jieyang City, Guangdong Province, and won the first instance. The defendant appealed to the Guangdong Provincial Higher People's Court. The second instance has not yet been ruled upon, and there is uncertainty as to whether Gaole Shares will obtain the performance compensation and the amount of such compensation. This paragraph does not affect the audit opinion already issued."