Securities code: 688120 Securities abbreviation: Huahai Qingke Announcement number: 2024-061

Huahai Qingke Co., Ltd

Announcement on the re-appointment of the auditor for 2024

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or material omissions in the content of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content in accordance with the law.

Important Content Notes:

Name of accounting firm to be hired: Lixin Certified Public Accountants (Special General Partnership)

This matter still needs to be submitted to the general meeting of shareholders of the company for deliberation

Huahai Qingke Co., Ltd. (hereinafter referred to as the "Company") held the sixth meeting of the second session of the board of directors on November 29, 2024, and deliberated and approved the "Proposal on the Renewal of the Appointment of the 2024 Auditor", and intends to re-appoint Lixin Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Lixin") as the company's 2024 financial report and internal control auditor. This proposal still needs to be submitted to the general meeting of shareholders for deliberation, and the relevant matters are hereby announced as follows:

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

(1) Institutional information

1. Basic information

Lixin Certified Public Accountants (Special General Partnership) was founded in Shanghai in 1927 by Dr. Pan Xulun, China's accounting leader, and resumed in 1986, becoming the first special general partnership accounting firm in China to complete the restructuring in 2010, with a registered address in Shanghai and a chief partner of Mr. Zhu Jiandi. Fong's is a member firm of the international accounting network BDO, which has been engaged in securities service business for a long time, and has a securities and futures business license before the implementation of the new securities law, has H-share audit qualifications, and has been registered with the Public Company Accounting Oversight Board (PCAOB) in the United States.

As of the end of 2023, FONG'S has 278 partners, 2,533 certified public accountants, a total of 10,730 employees, and 693 certified public accountants who have signed audit reports on securities service business.

Fong's business income (audited) in 2023 will be 5.001 billion yuan, of which the audit business income will be 3.516 billion yuan.

The income from securities business was 1.765 billion yuan.

In 2023, Fong's will provide annual report audit services for 671 listed companies, with a total audit fee of 832 million yuan.

The company has 59 audit clients of listed companies in the same industry.

2. Investor protection ability

As of the end of 2023, Fong's has withdrawn 166 million yuan from the occupational risk fund, and the accumulated compensation for the occupational insurance purchased

The compensation limit is 1.25 billion yuan, and the relevant occupational insurance can cover the civil liability caused by audit failure.

Fong's civil liability in civil litigation related to professional conduct in the past three years:

Litigation (arbitration) litigation (arbitration) event litigation (arbitration) litigation (arbitration) results

Layoffs) Amount of layoffs

Geeya Technology, Zhou Shangyu 1,000 joint and several liability, Ericsson insured occupational insurance

The 2014 annual report of investors CIFI and Lixin is more than 10,000 yuan, and the lawsuit is sufficient to cover the amount of compensation, and the judgment is currently in effect

The decisions of the proceedings have been fulfilled

The first instance judgment of Lixin against Bao Qianli in 2016

Bao Qianli, Tohoku December 30 to December 14, 2017

Investors Securities, Bank Credit Rating 2015 restructuring, 2015 800,000 yuan during the securities misrepresentation of the act of the right

Valuation, Lixin and other reports, 2016 annual reports 15% of the investor's debt is to bear the supplement

Liability, professional insurance insured by Fong's

$1.25 billion is sufficient to cover the amount of compensation

3. Integrity record

In the past three years, Fong's has received 0 criminal penalties, 1 administrative punishment, and 29 supervision and management measures for his professional behavior

1 self-regulatory measure and 0 disciplinary sanctions, involving 75 employees.

(2) Project information

1. Basic information

Project Name Certified Public Accountant Started to Engage in Listing Started in the Firm Started to Raise for the Company

Practice time Company audit time Practice time For audit service hours

Project Partner: Jinhua Zhang, 2007, 2007, 2011, 2024

Signed CPA Wu Yin 2019 2017 2019 2024

Quality Control Reviewer: Wang Zhiyong, 2000, 2003, 2012, 2024

(1) The project partner's experience in the past three years:

Name: Jinhua Zhang

Time Listed Company Name Position

In 2021, Beijing Yusys Technology Group Co., Ltd. signed partner

2023 Ogilvy Medical Products Co., Ltd. Signing Partner

From 2022 to 2023, he will be the signing partner of Beijing Borui Hongyuan Data Technology Co., Ltd

2021-2022 Signing Partner of Beijing Zhongdi Investment Co., Ltd

2021-2023 Signing Partner of Hebei Henggong Precision Equipment Co., Ltd

From 2021 to 2023, he was the signing partner of Shandong Haike Xinyuan Material Technology Co., Ltd

In 2023, Zhongrun Resources Investment Co., Ltd. signed partner

2021-2023 Review Partner of Beijing Kunlun Wanwei Technology Co., Ltd

2021-2022 Review Partner of Tibet Gaozheng Civil Explosives Co., Ltd

2021-2023 Review Partner of Huayuan Real Estate Co., Ltd

2021-2023 Zhejiang Ailip Technology Co., Ltd. Review Partner

2021-2023 Dongxin Semiconductor Co., Ltd. Review Partner

From 2021 to 2022, Chengyuan Mining Development Co., Ltd. Review Partner

2021-2023 Tibet Huayu Mining Co., Ltd. Review Partner

(2) Signing CPA's practice in the past three years:

Name: Wu Yin

Time Listed Company Name Position

In 2021, Beijing Zhizhen Technology Co., Ltd. signed a certified public accountant

(3) The quality control reviewer's employment in the past three years:

Name: Zhiyong Wang

Time Listed Company Name Position

2022-2023 Signing Partner of Beijing Luen Thai Xinke Railway Technology Co., Ltd

2022-2023 Signing Partner of Beijing Yushiyuan Food Co., Ltd

In 2022, Beijing Zhongyu Dental Co., Ltd. signed partner

From 2021 to 2022, he was the signing partner of Zhongyu Guangheng Technology Co., Ltd

From 2021 to 2023, he was a signing partner of Jiayou International Logistics Co., Ltd

From 2021 to 2023, he was a signed partner of AECC Power Co., Ltd

From 2021 to 2023, he was the signing partner of Zhoushan Taihe Food Co., Ltd

2022-2023 Review Partner of Beijing Borui Hongyuan Data Technology Co., Ltd

2022-2023 Review Partner of Beijing Miaoyin Digital Technology Co., Ltd

2022-2023 Review Partner of Beijing Naland Technology Co., Ltd

2022-2023 Review Partner of Beijing Tsingda Tianda Optoelectronics Technology Co., Ltd

2022-2023 Review Partner of Huahai Qingke Co., Ltd

2022-2023 Review Partner of Tus-Pharmaceutical Group Co., Ltd

2. Integrity record

The project partners, signatory certified public accountants and quality control reviewers have not been subject to criminal penalties or administrative penalties for their professional conduct in the past three years, and have not been subject to the supervision and management measures of the securities regulatory authority or the self-regulatory measures or disciplinary actions of self-regulatory organizations such as stock exchanges and industry associations.

3. Independence

Fong's and the above-mentioned project partners, signatory CPAs and quality control reviewers did not violate the Rules

4. Audit fees

The pricing principle of audit fees in 2024 is mainly based on various factors such as the company's business scale, industry and complexity of accounting treatment, and is determined through public bidding and combined with factors such as the number of auditors and the workload invested in the company's annual report.

The company's audit fee for 2024 is 1 million yuan (tax included), of which the audit fee for financial reports is 800,000 yuan and the internal control audit fee is 200,000 yuan, a decrease of 100,000 yuan compared with the audit fee in 2023, the details are as follows:

Unit: 10,000 yuan (tax included)

Project 2023 Audit Fee 2024 Audit Fee Increase

Financial Report Audit 90 80 -11.11%

Internal Control Audit 20 20 -

Total 110 100 -9.09%

2. The procedures to be performed by the accounting firm to be re-engaged

(1) The deliberation opinions of the Audit Committee

The audit committee of the board of directors of the company reviewed the process of the company's selection and appointment of accounting firms, and carefully checked the selection procedures, bidding documents, and the qualifications of the accounting firms, professional competence, investor protection capabilities, independence and integrity, etc., and believed that Fong's has rich experience and ability in the audit work of listed companies, can meet the requirements of the company's financial audit and internal control audit, and can follow independent, objective and impartial professional standards during the period of providing audit services for the company. At the same time, according to the results of the company's public bidding, the procedures for the re-appointment of the accounting firm are compliant, and there is no harm to the interests of the company and shareholders, and it is agreed to re-appoint Lixin Certified Public Accountants (Special General Partnership) as the company's 2024 audit institution, responsible for the company's financial report audit and internal control audit, and submitted to the company's board of directors for deliberation.

(2) Deliberations of the Board of Directors

On November 29, 2024, the sixth meeting of the second session of the board of directors was held, and the "About Renewal of Appointment" was deliberated and approved

The proposal of the 2024 annual audit institution, agreed to re-appoint Fong's as the company's 2024 annual audit institution, responsible for the company's financial report audit and internal control audit, for a period of one year.

(3) Effective date

The matter of re-appointment of the auditor for 2024 still needs to be submitted to the general meeting of shareholders of the company for deliberation and from the company

It shall take effect from the date of deliberation and approval of the general meeting of shareholders.

The announcement is hereby made

Huahai Qingke Co., Ltd

Board of Directors

November 30, 2024