Audit Report on Special Explanation for Correction of Prior Period Accounting Errors
Lixin Zhonglian CPAs (SPECIAL GENERAL PARTNERSHIP) Lixin Zhonglian Special Audit Word [2026]D-0307
To all shareholders of Shanxi Tongde Chemical Co., Ltd.:
We were engaged to audit the accompanying "Special Explanation for Correction of Prior Period Accounting Errors" (hereinafter referred to as the "Special Explanation") prepared by Shanxi Tongde Chemical Co., Ltd. (hereinafter referred to as "Tongde Chemical Company").
Management's Responsibility
Tongde Chemical Company is responsible for: (1) identifying prior period accounting errors and making appropriate corrections, and properly presenting and disclosing relevant information in the financial statements, in accordance with "Accounting Standards No. 28 – Changes in Accounting Policies, Accounting Estimates and Errors" and the China Securities Regulatory Commission's "Rules for the Preparation of Information Disclosure by Companies Issuing Securities No. 19 – Correction and Related Disclosure of Financial Information"; and (2) preparing and disclosing the "Special Explanation for Correction of Prior Period Accounting Errors" in a truthful and accurate manner.
Auditor's Responsibility
Our responsibility is to express an opinion on the "Special Explanation for Correction of Prior Period Accounting Errors" prepared by the management of Tongde Chemical Company. We performed our assurance engagement in accordance with the Chinese Standards on Assurance Engagements. These standards require us to comply with professional ethics, plan and perform the assurance engagement to obtain reasonable assurance about whether the "Special Explanation for Correction of Prior Period Accounting Errors" is free from material misstatement. Our procedures included examining relevant accounting information and documents, examining accounting records, and performing recalculations as we considered necessary. We believe that the work performed provides a reasonable basis for our opinion.