Special Report on Non-Operational Fund Occupation and Other Related Fund Transactions of Xinling Electric Co., Ltd.
To all shareholders of Xinling Electric Co., Ltd.:
We have audited the financial statements of Xinling Electric Co., Ltd. (hereinafter referred to as "Xinling Electric") for the year 2025, including the consolidated and parent company balance sheets as of December 31, 2025, 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 related notes to the financial statements. We issued an unqualified audit report numbered Xinhui Shiba Zi (2026) No. ZF10144 on March 30, 2026.
The management of Xinling Electric prepared the attached summary table of non-operational fund occupation and other related fund transactions for the year 2025 (hereinafter referred to as the "Summary Table") in accordance with the relevant provisions of the China Securities Regulatory Commission's "Guidelines for the Supervision of Listed Companies No. 8 - Regulatory Requirements for Fund Transactions and External Guarantees" (CSRC Announcement [2022] No. 26) and the "Self-Regulatory Guidelines No. 1 for Listed Companies on the Shenzhen Stock Exchange's Growth Enterprise Market - Business Handling."
It is the responsibility of the management of Xinling Electric to prepare the Summary Table and ensure its truthfulness, accuracy, and completeness. We have verified the information contained in the Summary Table against the accounting materials we reviewed during our audit of Xinling Electric's financial statements for 2025 and found no significant inconsistencies. To better understand the non-operational fund occupation and other related fund transactions of Xinling Electric for 2025, the Summary Table should be read in conjunction with the audited financial statements.
This report is intended solely for the purpose of disclosure in Xinling Electric's 2025 annual report and may not be used for any other purpose.
Certified Public Accountants:
Chen Yu (Special General Partnership)
Zhu Yishan
Shanghai, China
March 30, 2026