Special Explanation on the Occupation of Funds by the Controlling Shareholder and Other Related Parties 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 attached "Summary Table of Non-Operating Fund Occupations and Other Related Transactions for Xi'an Baode Automation Co., Ltd. for the Year 2021" (hereinafter referred to as the Summary 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, the consolidated and parent company cash flow statements, the consolidated and parent company statements of changes in equity, and the notes to the financial statements.
In accordance with the "Guidelines for the Supervision of Listed Companies No. 8 - Regulatory Requirements for Fund Transactions and External Guarantees" (CSRC Announcement [2022] No. 26), it is the responsibility of your company's management to prepare and disclose the Summary Table and provide true, legal, and complete verification evidence. Our responsibility is to verify the Summary Table and issue a special explanation.