Shenzhen Kechuang Xinyuan New Materials Co., Ltd. Special Explanation on Non-operating Fund Occupation and Other Related Party Fund Transactions in 2025
To the Shareholders of Shenzhen Kechuang Xinyuan New Materials Co., Ltd.:
We have been entrusted to audit the financial statements of Shenzhen Kechuang Xinyuan New Materials Co., Ltd. (hereinafter referred to as "Kechuang Xinyuan Company") for the year 2025, in accordance with the "Chinese Certified Public Accountants Auditing Standards." This audit included the consolidated and company balance sheets as of December 31, 2025, the consolidated and company income statements, consolidated and company cash flow statements, consolidated and company statements of changes in owners' equity, and the notes to the financial statements. We issued the "Zhonghua Certified Public Accountants Report" (Zhonghua Hui Zi (2026) No. 04340) on April 27, 2026.
In accordance with the requirements of the China Securities Regulatory Commission's "Supervision Guidelines for Listed Companies No. 8 - Supervision Requirements for Listed Company Fund Transactions and External Guarantees" and the format of the summary table for non-operating fund occupation and other related party fund transactions stipulated in the "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Guidelines No. 1 - Business Handling," Kechuang Xinyuan Company has prepared the attached summary table of non-operating fund occupation and other related party fund transactions for 2025 (hereinafter referred to as the "Summary Table").