Special Explanation on Revenue Deductions of Xi'an Baode Automation Co., Ltd.
To all shareholders of Xi'an Baode Automation Co., Ltd.:
We have been entrusted to conduct a special verification of the revenue deductions for the year 2021 (hereinafter referred to as the revenue deduction table) based on the audit of the consolidated and parent company balance sheets as of December 31, 2021, the consolidated and parent company income statements, consolidated and parent company cash flow statements, changes in consolidated and parent company shareholders' equity, and the notes to the financial statements of your company.
According to the provisions of the Shenzhen Stock Exchange Growth Enterprise Market Listing Rules, it is the responsibility of your company's management to prepare and disclose the revenue deduction table and provide true, legal, and complete verification evidence. Our responsibility is to verify the aforementioned revenue deduction table and issue a special explanation.
We performed the verification work in accordance with the Chinese Certified Public Accountant Auditing Standards. These standards require us to comply with professional ethics, plan, and implement verification work to obtain reasonable assurance that the revenue deduction table is free from material misstatement. During the verification process, we implemented necessary procedures, including examining accounting records and recalculating relevant item amounts. We believe that our verification work provides a reasonable basis for our opinion.