Special Statement on Fund Occupation by Controlling Shareholder and Other Related Parties
To the shareholders of Sino-Fluorine Materials Co., Ltd.:
We have been engaged to audit the 2025 financial statements of Sino-Fluorine Materials Co., Ltd. (hereinafter referred to as "Sino-Fluorine" or "the Company"), including the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements, consolidated and parent company cash flow statements, and consolidated and parent company statements of changes in owners' equity, along with the notes to the financial statements. We issued a standard unqualified audit report with report number 政旦志远审字 260000084 on April 14, 2025.
In accordance with the "Regulatory Requirements for Listed Companies on Fund Transactions and External Guarantees" (CSRC Announcement [2022] No. 26) issued by the China Securities Regulatory Commission and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guide No. 1 - Business Handling" issued by the Shenzhen Stock Exchange, we hereby issue a special statement on the "Summary Table of Non-Operating Fund Occupation and Other Related Party Transactions of Sino-Fluorine Materials Co., Ltd. for 2025" (hereinafter referred to as the "Summary Table").
The management of Sino-Fluorine is responsible for the truthful preparation and external disclosure of this Summary Table, ensuring its authenticity, legality, and completeness. We have cross-checked the information in the Summary Table with the accounting information and audited financial statements that we reviewed during our audit of Sino-Fluorine's 2025 financial statements. In all material respects, we have found no inconsistencies. Apart from the audit procedures related to related party transactions performed during our audit of Sino-Fluorine's 2025 financial statements, we have not performed any additional audit procedures on the information contained in the Summary Table. To better understand the situation of fund occupation by Sino-Fluorine's controlling shareholder and other related parties in 2025, the accompanying Summary Table should be read in conjunction with the audited financial statements.