Beijing Stone Century Technology Co., Ltd

An evaluation report on the performance of the accounting firm's performance in 2024

Beijing Stone Century Technology Co., Ltd. (hereinafter referred to as the "Company") has hired Ernst & Young Huaming Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Ernst & Young Huaming") as the auditor of the Company's 2024 annual report. In accordance with the regulations and requirements of the Administrative Measures for the Selection and Appointment of Accounting Firms by State-owned Enterprises and Listed Companies issued by the Ministry of Finance, the State-owned Assets Supervision and Administration Commission of the State Council and the China Securities Regulatory Commission, the Company evaluated the performance of EY Huaming's performance during the audit process in 2024. The details are as follows:

1. The basic situation of the accounting firm

Ernst & Young Huaming was established in September 1992 and completed the localization transformation in August 2012

The limited liability law firm was transformed into a special general partnership firm. Ernst & Young Huaming is headquartered in Beijing.

The registered address is Room 01-12, 17th Floor, Ernst & Young Building, Oriental Plaza, No. 1 East Chang'an Street, Dongcheng District, Beijing. up to

By the end of 2024, it will have 251 partners, and the chief partner is Mr. Mao Anning. Ernst & Young Huaming is one of the first firms in China to obtain securities and futures-related business qualifications and H-share corporate audit qualifications issued by the Ministry of Finance, and is registered with the US Public Company Accounting Oversight Board (US PCAOB).

EY Huaming has 23 branches, namely Shanghai, Tianjin, Dalian, Shenyang, Jinan, Qingdao, Zhengzhou, Xi'an, Wuhan, Chengdu, Hefei, Nanjing, Suzhou, Hangzhou, Changsha, Kunming, Chongqing, Xiamen, Guangzhou, Shenzhen, Taiyuan, Haikou and Ningbo. According to the "2023 Comprehensive Evaluation of 100 Accounting Firms" released by the Chinese Institute of Certified Public Accountants, Ernst & Young Huaming ranked first. As of the end of 2024, EY Huaming has more than 1,700 certified public accountants, including more than 1,500 certified public accountants with experience in securities-related business services.

Ernst & Young Huaming's total business revenue in 2023 is RMB5.955 billion, of which the audit business income is RMB5.955 billion

RMB5.585 billion, and securities business income of RMB2.438 billion. 2023 Annual Report Review of A-share Listed Companies

There are a total of 137 customers, with a total fee of RMB 905 million. The main industries of these listed companies involve manufacturing, finance, wholesale and retail, mining, information transmission, software and information technology services, leasing and business services, etc.

The project partner and the first signing CPA is Ms. Zhang Axiao, who became a certified public accountant in 2012, began to engage in the audit of listed companies in 2009, began to practice at Ernst & Young Huaming in 2009, and has been providing audit services for the company since 2024. Failure to sign/review the annual report/internal control audit report of the listed company in the past three years.

The second signatory CPA is Ms. Teng Teng, who became a CPA in 2014 and started in 2012

Engaged in the audit of listed companies, he has been practicing at Ernst & Young Huaming since 2012 and has been providing audit services for the company since 2024; In the past three years, we have signed/reviewed the annual reports/internal control audit reports of 2 domestic listed companies, mainly in the industries of information transmission, software and information technology services, and automobile manufacturing.

The project quality reviewer is Ms. Liao Wenjia, who became a Certified Public Accountant in 2006 and has been working since 2003

Audited listed companies, practiced at Ernst & Young Huaming since 2001 and has been providing audit services to the Company since 2024; In the past three years, we have reviewed the annual reports/internal control audit reports of 5 domestic listed companies, mainly in the industries of consumer goods, wholesale and retail trade, manufacturing, electricity, heat, gas and water production and supply, information transportation, software and information technology services, etc.

Ernst & Young Huaming, the above-mentioned project partners, signatory CPAs, and project quality reviewers did not violate the independence requirements of the Code of Professional Ethics for Chinese Certified Public Accountants.

2. Assessment of the performance of duties by accounting firms

(1) Quality management level

1. System construction and implementation

In accordance with the requirements of the Quality Management Standard for Accounting Firms No. 5101 – Business Quality Management issued by the Ministry of Finance of the People's Republic of China and the International Quality Management Standard No. 1 issued by the International Auditing and Assurance Standards Board, EY Huaming has established a comprehensive quality management system covering the eight elements required by the standard, namely risk assessment procedures, governance and leadership, relevant professional ethics requirements, acceptance and maintenance of client relationships and specific businesses, business execution, resources, Information and communication, monitoring and corrective action procedures. Each component element is effectively connected, mutually supportive, and coordinated to ensure the active and effective implementation of quality management.

2. Integrated management of the head office and branches

In accordance with the Law of the People's Republic of China on Certified Public Accountants, the Measures for the Practice Licensing and Supervision of Accounting Firms of the Ministry of Finance, and the Measures for the Integrated Management of Accounting Firms, Ernst & Young Huaming has formulated the integrated management measures for the head office and branches, and implements completely unified policies and systems in business management, technical standards and quality management, personnel management, financial management, information system management, etc., and strictly implements them in the head office.

3. Project consulting

In order to control and manage possible risks, EY Huaming has established a list of matters that must be consulted to ensure that major and difficult matters are consulted.

4. Resolve differences of opinion

EY Huaming has developed a clear mechanism for resolving professional differences of opinion. When there is an unresolved professional disagreement between the project team members, the project quality reviewer or the members of the professional business department, it is necessary to consult the professional business director. A report shall not be issued until the difference of professional opinion has been resolved.

5. Project quality review

EY Huaming requires the project quality review to be conducted in a timely manner at the appropriate stage to ensure that all material issues can be resolved before the report is issued.

(2) The level and quality of audit services

1. Audit input

Ernst & Young Huaming is equipped with a dedicated audit team, and the core team members have many years of audit experience in listed companies and household appliances industry, and have professional qualifications such as Chinese certified public accountants. EY Huaming's back-office support team includes experts in professional business units, tax, information systems, actuarial science, valuation, and other fields.

2. Audit service quality and level

During the audit process, EY Huaming formulated a comprehensive, reasonable and operable audit work plan based on the company's service needs and the actual situation of the audited unit. The audit work is carried out around the company's audit priorities. In the process of performing the audit work, EY Huaming fully met the requirements of the listed company's report disclosure time. EY Huaming has developed a detailed audit plan and schedule, and is able to submit all work results on time according to the plan.

(3) Information security management

The company clearly stipulates the responsibilities and obligations of EY Huaming in information security management in the employment contract. EY Huaming has formulated a systematic information security control system covering file management, confidentiality system, emergency handling, etc., and in the process of formulating audit plans and implementing audit work, it also considers the inspection, processing, desensitization and archiving management of sensitive information and confidential information, and can effectively implement it.

3. Overall evaluation

The Company believes that Ernst & Young Huaming adhered to a fair and objective attitude in conducting an independent audit during the 2024 annual audit process, demonstrated good professional ethics and business quality, and completed the audit of the Company's 2024 annual report on time

The audit report issued is objective, complete, clear and timely.

Beijing Stone Century Technology Co., Ltd

April 2, 2025