Report on the Audit Committee's Evaluation of the Audit Firm's Performance for the Year 2025
On March 21, 2026, the Audit Committee of Shenzhen Institute of Building Science Co., Ltd. (hereinafter referred to as the "Company") reported on the evaluation of the performance of the audit firm for the year 2025, which was approved by the Company's second extraordinary general meeting of shareholders in 2025. The Company appointed Lixin Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Lixin") as the audit firm for the year 2025, providing audit services for the financial statements and internal control audit of the financial report for the year 2025, and issued standard unqualified audit reports for both.
According to the "Management Measures for the Appointment of Accounting Firms by State-owned Enterprises and Listed Companies," the Audit Committee of the Board of Directors supervised and evaluated Lixin's performance for the year 2025. The specific situation is as follows:
Evaluation of the Audit Firm's Performance
Lixin issued standard unqualified audit reports for the financial statements. The Audit Committee evaluated Lixin's performance based on supervision, audit conditions, basic information about the audit firm, implementation of audit projects, and performance of duties (see attachment). The evaluation concluded that Lixin conducted the audit work independently, diligently, and responsibly, reaching consensus with the Company on all significant accounting audit matters, effectively fulfilling the responsibilities of the audit firm, and the audit reports were objective, truthful, and complete.
Supervision of the Audit Firm
The Audit Committee strictly adhered to the relevant regulations of the China Securities Regulatory Commission (CSRC), Shenzhen Stock Exchange, and the Company's Articles of Association and Rules of Procedure for the Audit Committee. It reviewed the qualifications and professional capabilities of the audit firm, fully discussed and communicated with the audit firm during the annual report audit period, urged the audit firm to act honestly and diligently, strictly comply with business rules and industry self-regulatory norms, and effectively verify the Company's financial accounting reports, fulfilling the special duty of care and prudently expressing professional opinions.
Supervision of the Appointment of the Audit Firm
The Audit Committee comprehensively reviewed the documents related to the appointment of the audit firm for 2025 provided by the Company, as well as Lixin's qualifications, professional records, and quality management levels. It concluded that Lixin and its proposed service team possess the appropriate professional competence, investor protection capability, integrity, and independence to provide audit services for the Company in 2025. The audit fees were determined by Lixin based on the scope of audit services and workload, and the proposal to change the audit firm for 2025 was submitted to the Board for review after prior research by the Audit Committee on September 22, 2025.