Auditor's Special Review Report on Non-operating Fund Occupation and Other Related Party Fund Transactions
Ref. No.: Zhonghui CPA [2026] 6592
To all shareholders of Hangzhou Zhonghui Electric Co., Ltd.:
We were engaged to audit the 2025 financial statements of Hangzhou Zhonghui Electric Co., Ltd. (hereinafter referred to as "Zhonghui Electric" or "the Company") and issued an unqualified audit report (Zhonghui CPA Audit [2026] 6591). Based on this, we have audited the "Summary Statement of Non-operating Fund Occupation and Other Related Party Fund Transactions for 2025" (hereinafter referred to as the "Summary Statement") prepared by the management of Zhonghui Electric.
I. Management's Responsibility
Management is responsible for providing true, lawful, and complete relevant information. Management is responsible for preparing the Summary Statement in accordance with the "Regulatory Requirements for Listed Companies' Fund Transactions and External Guarantees" (Announcement No. 26 of the China Securities Regulatory Commission) issued by the China Securities Regulatory Commission, the Ministry of Public Security, the State-owned Assets Supervision and Administration Commission of the State Council, and the China Banking and Insurance Regulatory Commission, and other relevant regulations to meet regulatory requirements. Management is also responsible for designing, implementing, and maintaining necessary internal controls, and ensuring that the content is true, accurate, and complete, without false records, misleading statements, or material omissions.
II. Auditor's Responsibility
Our responsibility is to express a special audit opinion on the Summary Statement prepared by the management of Zhonghui Electric, based on the performance of audit work. Chinese Certified Public Accountant Auditing Standards require us to comply with the Code of Professional Ethics for Chinese Certified Public Accountants, and to plan and perform the audit work to obtain reasonable assurance about whether the Summary Statement is free from material misstatement.