Independent Auditor's Report on the Special Report of the Status of Raised Funds Storage, Management, and Use for 2025
To All Shareholders of Puyang Hecheng Electronic Materials Co., Ltd.:
We were engaged to perform an assurance service on the accompanying Special Report of the Status of Raised Funds Storage, Management, and Use for 2025 (hereinafter referred to as the "Special Report on Raised Funds") of Puyang Hecheng Electronic Materials Co., Ltd. (hereinafter referred to as "Puyang Hecheng").
I. Responsibilities of the Board of Directors The responsibility of the Board of Directors of Puyang Hecheng is to prepare the Special Report on Raised Funds in accordance with the "Supervision Rules for Raised Funds of Listed Companies" (CSRC Announcement [2025] No. 10), the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 2 – Normative Operation of GEM Listed Companies," and the "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Management Guide No. 2 – Announcement Format" issued by the China Securities Regulatory Commission. This responsibility includes designing, implementing, and maintaining internal controls related to the preparation of the Special Report on Raised Funds, ensuring that the Special Report on Raised Funds is true, accurate, and complete, and does not contain any false records, misleading statements, or material omissions.
II. Responsibilities of the Registered Accountant Our responsibility is to express an assurance conclusion on the Special Report on Raised Funds based on the performance of the assurance engagement.
III. Overview of Work We performed the assurance engagement in accordance with the "Other Assurance Services Standards of Chinese Certified Public Accountants No. 3101 – Assurance Services Other Than Audits or Reviews of Historical Financial Information." This standard requires us to comply with professional ethics, plan and perform the assurance engagement to obtain reasonable assurance about whether the Special Report on Raised Funds has been prepared, in all material respects, in accordance with the "Supervision Rules for Raised Funds of Listed Companies" (CSRC Announcement [2025] No. 10), the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 2 – Normative Operation of GEM Listed Companies," and the "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Management Guide No. 2 – Announcement Format" issued by the China Securities Regulatory Commission, and to truthfully reflect the status of storage, management, and use of raised funds by Puyang Hecheng in 2025. In performing the assurance engagement, we performed procedures including inquiries and examination of accounting records as we deemed necessary. We believe that our assurance work provides a reasonable basis for our assurance conclusion.
IV. Assurance Conclusion We are of the opinion that the Special Report on Raised Funds Storage, Management, and Use for 2025 of Puyang Hecheng has been prepared, in all material respects, in accordance with the "Supervision Rules for Raised Funds of Listed Companies" (CSRC Announcement [2025] No. 10), the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 2 – Normative Operation of GEM Listed Companies," and the "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Management Guide No. 2 – Announcement Format" issued by the China Securities Regulatory Commission, and truthfully reflects the status of storage, management, and use of raised funds by Puyang Hecheng in 2025.
V. Limitations on the Use of the Report This report is intended solely for the purpose of Puyang Hecheng's disclosure in its 2025 Annual Report and shall not be used for any other purpose.
Xielv Certified Public Accountants (Special General Partnership) Chinese Certified Public Accountant: [blank] Chinese Certified Public Accountant: [blank] China · Shanghai March 26, 2026
Special Report No. 1
Special Report on the Status of Raised Funds Storage, Management, and Use for 2025 of Puyang Hecheng Electronic Materials Co., Ltd.