Yantai Zhenghai Magnetic Material Co., Ltd. (hereinafter referred to as "the Company") and all members of the board of directors guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
Special Reminder: The renewal of the accounting firm complies with the provisions of the "Management Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies" issued by the Ministry of Finance, the State-owned Assets Supervision and Administration Commission of the State Council, and the China Securities Regulatory Commission (Cai Kuai [2023] No. 4).
On May 29, 2026, the Company held the 12th meeting of the sixth board of directors, which reviewed and approved the proposal on the renewal of the accounting firm, agreeing to renew the appointment of Zhongxinghua Accounting Firm (Special General Partnership) (hereinafter referred to as "Zhongxinghua") as the Company's auditing institution for the fiscal year 2026. This matter will be submitted to the Company's second extraordinary general meeting of shareholders in 2026 for deliberation. The relevant matters are announced as follows:
1. Explanation of the Proposed Renewal of the Accounting Firm
Zhongxinghua has the qualifications to engage in securities and futures-related business and possesses the experience and capability to provide auditing services for listed companies. In providing auditing services to the Company, it adheres to independent, objective, and fair professional standards, diligently fulfilling its responsibilities and providing high-quality auditing services. Its reports can objectively and truthfully reflect the Company's actual situation, financial status, and operating results, effectively safeguarding the legitimate rights and interests of the Company and its shareholders. The Company intends to continue appointing Zhongxinghua as its auditing institution for the fiscal year 2026, with a term of one year. The board of directors proposes that the shareholders authorize the management to negotiate and determine the relevant audit fees for 2026 based on fair market pricing principles.