Stock code: 688608 Stock abbreviation: Hengxuan Technology Announcement No.: 2023-007

Hengxuan Technology (Shanghai) Co., Ltd.

Announcement on Renewal of Appointment of Accounting Firm

the company's board of directors and all directors to ensure that the contents of this announcement does not exist any false records, misleading statements or major omissions, and the authenticity, accuracy and completeness of the contents of the legal responsibility.

Important Content Tips:

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

The basic situation of the 1.'s proposed appointment of accounting firms.

(I) Institution Information

1. Basic information

Lixin Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Lixin") was founded in Shanghai in 1927 by Dr. Pan Xulun, a leading accountant in China, and resumed in 1986. In 2010, it became the first special general partnership accounting firm in China to complete the restructuring. Its registered address is Shanghai and its chief partner is Mr. Zhu Jiandi. Lixin is a member of the international accounting network BDO, has long been engaged in securities services business, 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 U.S. Public Company Accounting Oversight Board (PCAOB).

As of the end of 2022, Lixin has 267 partners, 2,392 certified public accountants, and employees.

The total number is 10,620, and 674 certified public accountants have signed the audit report of securities service business.

Lixin's 2022 business income (unaudited) is 4.523 billion yuan, of which the audit business income is 34.29.

billion yuan, securities business income of 1.565 billion billion yuan.

In 2022, Lixin provided annual report audit services to 646 listed companies, with an audit fee of 0.719 billion yuan,

73 audit clients of listed companies in the same industry.

2. Investor protection capacity

By the end of 2022, Lixin had withdrawn $0.161 billion million from its occupational risk fund and purchased occupational insurance.

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

Civil liability in civil litigation related to practice in the past three years:

Sue (Zhong Litigation (Arbitration) Litigation (Zhong)

Accused (arbitrated) party litigation (arbitration) result

Cut) person event cut) amount

Joint and several liability, the professional insurance insured by Lixin is sufficient.

Jinya Technology, Zhou Xu expects 4,500.

Investors reported in 2014 to cover the amount of compensation, which is now in effect.

Hui, Lixin Yuan

Fulfilled

First instance verdict Lixin to Baoqianli in 2016

30 December to 14 December 2017

Baoqianli, Northeast China Securities 2015 reorganization,

During the period due to securities misrepresentation to investors.

Investor securities, bank letter assessment, 2015 annual report, 800000 yuan.

15% of the debt to bear supplementary liability.

Letter and other 2016 annual reports

The occupational insurance insured by Lixin is sufficient to cover.

Amount of compensation

The case has been opened and has not yet been decided.

Investors Xinyi shares, Lixin and other annual reports 174300.

The insured occupational insurance is sufficient to cover the amount of compensation.

Berborg Dragon, Lixin, Guo

The cases of Credit Securities, ZTE Caiguang IPO and Annual Report have not yet been heard, and the occupational insurance of Lixin Insurance has yet to be heard.

Investors not counted

China, Guangdong Cinda lawyer insurance is sufficient to cover the amount of compensation.

Office, etc.

The case of Longli Bio and Huaying Securities has not yet been heard, and the occupational insurance of Lixin Insurance

Annual investor reports are not statistical

Securities, credit and other insurance is sufficient to cover the amount of compensation.

Shenzhou Great Wall, Chen Lue, the case has not yet been decided, Lixin Insurance's occupational insurance.

Annual investor reports are not statistical

Li Erlong, Lixin and other insurance is sufficient to cover the amount of compensation.

3. Integrity records

Lixin has received no criminal punishment, two administrative penalties and 30 supervision and management measures for his practice in the past three years.

No self-regulatory measures and disciplinary action 2 times, involving 82 practitioners.

(II) project member information

1. Basic information

Certified Public Accountants began to engage in the firm began to start the Company.

Project Name City Company Audit provides audit services.

Practice Time Practice Time Practice Time

Project Partner Joki 1999 1999 2002 2022

Signed CPA Miao Huanyu 2021 2016 2016 2022

Quality Control Reviewer Zheng Lingyun 1996 1996 2004 2021

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

Name: Georgie

Time Listed Company Name Position

Project Partner of Hengxuan Technology (Shanghai) Co., Ltd. in 2022

2022 Beijing Shenzhou Taiyue Software Co., Ltd. Project Partner

Project partner of Jiangsu Zhuosheng Microelectronics Co., Ltd. in 2022

Project Partner of Yutai Microelectronics Co., Ltd. in 2022

Project Partner of Ningbo Shanshan Co., Ltd. in 2022

Project Partner of Shanghai Anlu Information Technology Co., Ltd. in 2022

(2) Signed certified public accountants in the past three years:

Name: Miao Huanyu

Time Listed Company Name Position

2022 Hengxuan Technology (Shanghai) Co., Ltd. Signed Certified Public Accountant

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

Name: Zheng Lingyun

Time Listed Company Name Position

2021-2022 Mingyue Lens Co., Ltd. Quality Control Reviewer

2022 Shanghai Ruichen Environmental Protection Technology Co., Ltd. Quality ControlReviewer

2020-2021 Shanghai Yayun Textile and Chemical Co., Ltd. Quality Control Reviewer.

2020-2022 Shanghai Yuanyao Agricultural Co., Ltd. Quality Control Reviewer.

2022 Quality Control Reviewer of Yuanyao Biotechnology (Yancheng) Co., Ltd.

2020-2021 Shanghai Wodi Intelligent Equipment Co., Ltd. signed certified public accountant.

2. Independence and integrity records of project team members.

Project partners, signed certified public accountants and quality control reviewers do not violate the China Registered Accounting Law.

The Code of Ethics of the Division requires independence.

2. audit fees

1, audit fee pricing principles.

Pricing is based primarily on the responsibilities assumed by the professional services and the degree of expertise required, taking into account factors such as the experience and level of the employees involved, the corresponding fee rates, and the hours of work invested.

2, the previous year's audit costs.

In 2022, the Company's audit fee was $500000. The main basis of the pricing principle of audit fees in 2023.

It is determined by the size of the company's business, the industry in which it operates and the complexity of its accounting treatment, and is based on the staffing of the auditor and the amount of work invested, as well as the firm's fees.

Procedures to be performed by the 3. of the proposed renewal of the accounting firm

(I) of the opinions of the Board of Auditors

The Audit Committee of the Board of Directors of the Company has conducted a rigorous review of the qualifications of Lixin Certified Public Accountants (Special General Partnership). The Audit Committee believes that it has the qualifications for securities and futures-related business practices, and has the professional capabilities and qualifications for auditing. During the period of providing audit services to the company, it adheres to the principle of independent auditing, diligently and responsibly, and objectively, fairly and fairly reflects the company's financial status and operating results, Effectively fulfilled the duties of the audit institution. It was unanimously agreed that the re-appointment of Lixin Certified Public Accountants (Special General Partnership) as the company's auditor for the year 2023 would be submitted to the company's board of directors for consideration.

Prior approval and independent opinion of (II) independent directors

Independent director's prior approval opinion: Lixin Certified Public Accountants (special general partnership) has the relevant business qualifications and rich experience and professionalism in auditing listed companies. In the process of cooperation with the company, it has provided the company with high-quality audit services. It has played a positive and constructive role in regulating the company's financial operation. During his tenure as an auditor of the Company, he followed the Independent Auditing Standards for Certified Public Accountants of the People's Republic of China and expressed his independent audit opinion diligently, dutifully, fairly and reasonably. Therefore, we unanimously agreed to re-appoint Lixin Certified Public Accountants (Special General Partnership) as the company's 2023 audit agency and submit the proposal to the company's board of directors for consideration.

Independent opinion of independent directors: 2022 issued by Lixin Certified Public Accountants (Special General Partnership) for the Company

The annual audit report objectively and fairly reflects the company's financial status, operating results and cash flow status in 2022; in the process of auditing the company's 2022 financial statements, it can adhere to the principles of independence, objectivity and impartiality, abide by the independent auditing standards of certified public accountants, and perform audit duties diligently and conscientiously; the financial audit fees determined are fair and reasonable. The re-employment of Lixin Certified Public Accountants (Special General Partnership) is conducive to maintaining the continuity and stability of the Company's audit business and ensuring the audit quality of the Company's financial statements. The procedure for the consideration of this motion by the board of directors is legal and effective, in line with the provisions of the Company Law, the articles of Association and other relevant laws and regulations, and there is no harm to the interests of the company and all shareholders. We agree to re-appoint Lixin Certified Public Accountants (Special General Partnership) as the company's 2023 audit agency, and agree to submit the proposal to the 2022 Annual General Meeting of Shareholders for consideration.

Deliberations and voting of the Board of Directors of the (III)

At the fourth meeting of the second board of directors of the company, the "Proposal on the Renewal of Accounting Firm" was reviewed and approved, and the company agreed to re-appoint Lixin Certified Public Accountants (Special General Partnership) as the company's 2023 audit agency.

Deliberations and opinions of the (IV) Supervisory Board

The fourth meeting of the second board of directors of the company deliberated and passed the proposal on the renewal of accounting firm. The board of supervisors held that the 2022 audit report issued by Lixin accounting firm (special general partnership) for the company objectively and fairly reflected the company's financial situation, operating results and cash flow in 2022; In the process of auditing the company's 2022 financial statements, we can adhere to the principles of independence, objectivity and impartiality, comply with the independent auditing standards of certified public accountants and perform audit duties diligently and responsibly; the financial audit fees determined are fair and reasonable. The re-employment of Lixin Certified Public Accountants (Special General Partnership) is conducive to maintaining the continuity and stability of the Company's audit business and ensuring the audit quality of the Company's financial statements. The procedure for the consideration of this motion by the board of directors is legal and effective, in line with the provisions of the Company Law, the articles of Association and other relevant laws and regulations, and there is no harm to the interests of the company and all shareholders. Accordingly, we agree to re-appoint Lixin Certified Public Accountants (Special General Partnership) as the company's 2023 audit agency and agree to submit the proposal to the 2022 Annual General Meeting of Shareholders for consideration.

The (V) of this renewal of the accounting firm still needs to be submitted to the company's general meeting of shareholders for deliberation, and it will take effect from the date of approval by the company's general meeting of shareholders.

It is hereby announced.

Hengxuan Technology (Shanghai) Co., Ltd.

Board of Directors

March 28, 2023