Special Audit Report on the Summary of Non-Operating Fund Occupation and Other Related Party Transactions of Hunan Mengjie Home Textile Co., Ltd.
Zhonghuan Special Letter (2026) 1100054
To all shareholders of Hunan Mengjie Home Textile Co., Ltd.:
We were engaged to conduct a special audit of the accompanying "Summary of Listed Company 2025 Non-Operating Fund Occupation and Other Related Party Transactions" (hereinafter referred to as the "Summary Table"), based on our audit of Hunan Mengjie Home Textile Co., Ltd. (hereinafter referred to as "Mengjie Shares Company")'s consolidated balance sheet as of December 31, 2025, consolidated income statement for 2025, consolidated cash flow statement for 2025, consolidated statement of changes in owners' equity, and the notes to the financial statements. In accordance with the "Regulatory Guidelines for Listed Companies No. 8 - Supervision Requirements for Listed Company Fund Transactions and External Guarantees" issued by the China Securities Regulatory Commission, the preparation and disclosure of the Summary Table and the provision of true, legal, and complete audit evidence are the responsibility of Mengjie Shares Company's management. Our responsibility is to express a special audit opinion on the Summary Table based on the performance of the audit work.
We conducted the audit work in accordance with the relevant provisions of the Chinese Certified Public Accountants' Auditing Standards. We have complied with the Chinese Certified Public Accountants' Independence Standards and the Chinese Certified Public Accountants' Professional Ethics Code. We are independent of Mengjie Shares Company and have fulfilled our other responsibilities under the professional ethics code. We have also complied with the independence requirements applicable to entities of public interest. We planned and performed our audit work to obtain reasonable assurance about whether the Summary Table is free from material misstatement. During the audit, we performed procedures we considered necessary, including examining accounting records and recalculating the amounts of relevant items. We believe that our audit work provides a reasonable basis for our audit opinion.