Stock code: 688536 Stock abbreviation: SRP Announcement No.: 2024-088

SRP Microelectronics Technology (Suzhou) Co., Ltd

Announcement on the Change of Financial and Internal Control Auditors for 2024

The board of directors and all directors of the company guarantee that there is no false record, misleading statement or material omission in the content of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content.

Important Content Notes:

1. Name of the accounting firm to be hired: Rongcheng Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Rongcheng Certified Public Accountants")

2. Name of the original accounting firm: PricewaterhouseCoopers Zhongtian Certified Public Accountants (Special General Partnership) (hereinafter referred to as "PricewaterhouseCoopers")

3. Brief reasons for the change of accounting firm and objections of the former accountant: In view of the recent public information of the former accounting firm, based on the principle of prudence and comprehensive consideration of the company's demand for audit services, the company intends to hire Rongcheng Certified Public Accountants (Special General Partnership) as the company's financial and internal control audit institution in 2024. There is no disagreement between the company and the former accounting firm in terms of work arrangements, fees, opinions, etc.

The Company has communicated with PricewaterhouseCoopers in advance on the proposed change of auditor, and PricewaterhouseCoopers has clearly understood this matter and confirmed that it has no objection. In accordance with the relevant provisions of the Administrative Measures for the Selection and Employment of Accounting Firms by State-owned Enterprises and Listed Companies and the Company's System for the Selection and Appointment of Accounting Firms, the Company selects and appoints financial and internal control auditors for 2024. The company intends to appoint Rongcheng Certified Public Accountants as the company's financial and internal control auditor for 2024 for a period of one year. The details are as follows:

1. The basic information of the accounting firm to be hired

(1) Institutional information

1. Basic Information

Rongcheng Certified Public Accountants (Special General Partnership) is composed of the former Huapu Tianjian Certified Public Accountants (Special General

Partnership) was initially established in August 1988 and restructured into a special general on December 10, 2013

The partnership is one of the earliest accounting firms in China to be allowed to engage in securities service business, and has been engaged in securities services for a long time

Coupon service business. The registered address is 901- Foreign Economic and Trade Building, Building 1, No. 22, Fuchengmenwai Street, Xicheng District, Beijing

22 to 901-26, Senior Partner Xiao Houfa.

2. Personnel Information

As of December 31, 2023, Rongcheng Certified Public Accountants has a total of 179 partners and a total of registered partners

There are 1,395 accountants, of which 745 have signed the audit report of the securities service business.

3. Business scale

The total audited revenue of Rongcheng Certified Public Accountants in 2023 is 287,224.60 yuan, which is audited

The total business income was 2748.7342 million yuan, and the securities and futures business income was 1498.568 million yuan.

Rongcheng Certified Public Accountants undertakes a total of 394 listed companies' 2023 annual report audit business, audit fees

With a total amount of 488,401,900 yuan, customers are mainly concentrated in the manufacturing industry (including but not limited to computer, communication and other electronic equipment manufacturing, special equipment manufacturing, electrical machinery and equipment manufacturing, chemical raw materials and chemical products manufacturing, automobile manufacturing, pharmaceutical manufacturing, rubber and plastic products industry, non-ferrous metal smelting and rolling processing industry, building decoration and other construction industries) and information transmission, software and information technology services, water conservancy, environment and public facilities management, scientific research and technical services, wholesale and retail and other industries. Rongcheng Certified Public Accountants audited 29 listed companies in the information transmission, software and information technology services industry where the company is located.

4. Investor protection capabilities

Rongcheng Certified Public Accountants has purchased CPA professional liability insurance, and the cumulative compensation limit of professional insurance is not less than 200 million yuan, and the purchase of professional insurance is in accordance with relevant regulations.

Bear civil liability in relevant civil litigation in the past three years:

On September 21, 2023, the Beijing Financial Court filed a lawsuit against LeTV Information Technology (Beijing) Co., Ltd

(hereinafter referred to as LeTV) securities misrepresentation liability dispute case [(2021) Jing 74 Min Chu No. 111].

The judgment was issued, and Huapu Tianjian Certified Public Accountants (Beijing) Co., Ltd. and Rongcheng Certified Public Accountants (special) were sentenced

General Partnership) in respect of the plaintiffs who had purchased LeTV shares after March 17, 2011 (inclusive).

The losses of the investors shall be jointly and severally liable with the defendant LeTV within the range of 1%. Huapu Tianjian and Rongcheng have appealed after receiving the judgment, and the case is still in the second-instance litigation procedure.

5. Integrity records

Yung Shing Certified Public Accountants has been subject to professional conduct in the past three years (the last three full calendar years and the current year).

0 criminal penalties, 0 administrative penalties, 15 supervision and management measures, 5 self-discipline and supervision measures, and self-discipline

1 sanction.

Practitioners have been criminally punished for their practice in the past three years (the last three full calendar years and the current year).

0 times, 3 employees were subject to administrative punishment 1 time each, and 64 employees were subject to supervision and management measures 22

5 self-discipline supervision measures, 1 disciplinary sanction, and 1 self-discipline sanction.

(2) Project information

1. Basic Information

Project Partner: Cui Yongqiang, became a Chinese Certified Public Accountant in 2006, began to engage in the audit business of listed companies in 2006, began to practice in Rongcheng Certified Public Accountants in 2020, and began to provide audit services for the Company in 2023; In the past three years, he has signed the audit reports of many listed companies such as Han's Laser, Han's CNC, Olympian Technology, and Zhengzhong Design.

Project Signing Certified Public Accountant: Zhu Aiyin, became a Chinese Certified Public Accountant in 2009, began to engage in the audit business of listed companies in 2010, began to practice in Rongcheng Certified Public Accountants in 2020, and began to provide audit services for the Company in 2023; In the past three years, he has signed audit reports of listed companies such as Keli and Olympian Technology.

Project Signing Certified Public Accountant: Sheng Dongqin, became a Chinese Certified Public Accountant in 2022, began to engage in the audit business of listed companies in 2017, began to practice in Rongcheng Certified Public Accountants in 2021, and began to provide audit services for the Company in 2023; In the past three years, he has signed the audit report of Kodali listed companies.

Project quality reviewer: Shi Shaoxiang, became a Chinese certified public accountant in 2011, began to engage in the audit business of listed companies in 2009, and began to practice in Rongcheng Certified Public Accountants in 2014; In the past three years, he has signed audit reports of listed companies such as Anke Biotechnology, Jinfu Technology, and Landun Optoelectronics.

2. The integrity records of the above-mentioned relevant personnel

The project partner, the signatory certified public accountant, and the project quality reviewer have not been subject to criminal penalties, administrative penalties, supervision and management measures, self-regulatory measures, or disciplinary sanctions for their professional conduct in the past three years.

3. Independence

Rongcheng Certified Public Accountants and the above-mentioned personnel have not violated the independence requirements of the Code of Professional Ethics of Chinese Certified Public Accountants.

4. Audit fees

Principle of audit fee pricing: according to the company's business scale, industry and complexity of accounting treatment and other factors, and according to the need to allocate auditors and the workload invested and the firm's fee standard

Determine the final audit fee accurately.

2. A description of the proposed change of accounting firm

(1) The situation of the former accounting firm and the audit opinion of the previous year

The former accounting firm PricewaterhouseCoopers adhered to the principle of independent auditing during the audit period for the company, performed diligently, fairly and independently issued audit opinions, objectively, fairly and accurately reflected the company's financial statements and internal control, and issued a standard unqualified audit report for the company in 2023. The company does not have the situation that the former accounting firm has been entrusted to carry out part of the audit work and then dismissed the former accounting firm.

(2) The reason for the proposed change of the accounting firm

In view of the recent public information of the former accounting firm, based on the principle of prudence and comprehensive consideration of the company's demand for audit services, the company intends to hire Rongcheng Certified Public Accountants (special general partnership) as the company's financial and internal control auditor in 2024; There is no disagreement between the company and the former accounting firm in terms of work arrangements, fees, opinions, etc.

(3) The communication between the listed company and the former accounting firm

The company has fully communicated with the former and former accounting firms on the change of accounting firms, and all parties have clearly understood this matter and confirmed that there is no objection. The former and former accounting firms will actively do a good job in communication, cooperation and connection in accordance with the Chinese Certified Public Accountants Auditing Standard No. 1153 - Communication between Former CPAs and Subsequent CPAs and other relevant regulations.

3. The procedures to be performed by the accounting firm are to be changed

(1) The deliberation opinions of the Audit Committee

The Audit Committee of the third board of directors of the company selected and hired the company's financial and internal control auditors for 2024 in accordance with the relevant provisions of the Administrative Measures for the Selection and Employment of Accounting Firms by State-owned Enterprises and Listed Companies and the Company's System for the Selection and Appointment of Accounting Firms, and deliberated and approved the "Proposal on Changing the Company's 2024 Financial and Internal Control Audit Institutions", and discussed the qualifications and practice records of Rongcheng Certified Public Accountants (Special General Partnership), the company's financial and internal control audit institutions to be changed in 2024, quality management level, work plan, human and other resource allocation, information security management, risk bearing capacity level, etc. were carefully reviewed and evaluated. The Audit Committee believes that Rongcheng Certified Public Accountants (Special General Partnership) has the professional qualifications and professional competence to provide audit services for listed companies, and the reasons for changing the accounting firm are appropriate and the procedures are compliant. Agreed to appoint Rongcheng Certified Public Accountants (Special General Partnership) as the company's financial and internal affairs in 2024

The Ministry controls the auditor and agrees to submit the proposal to the Board of Directors for consideration.

(2) The deliberation and voting of the board of directors

The company was deliberated and approved at the 34th meeting of the third board of directors held on October 29, 2024

The "Proposal on Changing the Company's 2024 Financial and Internal Control Audit Institution" agreed to appoint Rongcheng Certified Public Accountants (Special General Partnership) as the company's 2024 financial audit and internal control audit institution for a period of one year, and submitted it to the company's general meeting of shareholders for deliberation.

(3) Effective time

The company's change of audit institutions still needs to be submitted to the company's general meeting of shareholders for deliberation, and will take effect from the date of deliberation and approval of the company's general meeting of shareholders.

The announcement is hereby made.

Board of Directors of SRP Microelectronics Technology (Suzhou) Co., Ltd

October 30, 2024