Group 1 - The company held its 36th meeting of the 9th Board of Directors on October 17, 2025, to discuss various proposals [3][10] - The meeting was conducted via telecommunication, with all 11 directors present for voting [4][5] - The Board approved the hiring of Deloitte Huayong as the auditing firm for the 2025 financial report, with an audit fee of RMB 1.6625 million [6][15] - The Board also approved the hiring of Deloitte Huayong for internal control auditing, with a fee of RMB 0.3325 million [7][15] - The performance evaluation results and compensation settlement plan for the management team for 2024 were also approved [8] Group 2 - The company announced a delay in the Board of Directors' re-election and the reform of the Supervisory Board, which will be postponed to ensure continuity and stability [10][11] - The current Board and management will continue to fulfill their duties until the re-election and reform are completed [11] - The change of the auditing firm is due to the need for independence and objectivity, as the previous firm had served for several years [14][24] Group 3 - Deloitte Huayong has a strong background, having been established in 1993 and recognized for its experience in securities services [15][16] - The firm reported a total audited revenue of RMB 3.893 billion for 2024, with RMB 3.352 billion from auditing services [16] - The firm has not faced significant legal issues in the past three years, ensuring its reliability and integrity [17][20]

Core Viewpoint - The company intends to change its accounting firm from Xinyong Zhonghe to Deloitte Huayong for the 2025 fiscal year to ensure the independence and objectivity of the audit work [1][5]. Group 1: Change of Accounting Firm - The company has proposed to appoint Deloitte Huayong as the auditing firm for the 2025 financial report and internal control, following a bidding process [1][6]. - Deloitte Huayong has a history dating back to 1993 and has been involved in securities-related services for over 20 years, indicating substantial experience in the field [1][2]. - The decision to change firms is based on the need for independence, as Xinyong Zhonghe has provided services for 14 years [5][6]. Group 2: Deloitte Huayong's Credentials - Deloitte Huayong's total audited business revenue for 2023 was RMB 4.1 billion, with audit services contributing RMB 3.2 billion and securities services RMB 600 million [2]. - The firm has provided audit services for 58 listed companies in 2023, with total audit fees amounting to RMB 260 million [2]. - The firm has not faced any civil liability in the past three years and has a professional insurance coverage exceeding RMB 200 million [2][3]. Group 3: Audit Team Information - The project partner and signing CPA, Dong Xin, has been involved in public company audits since 2007 and will provide services starting in 2025 [3][4]. - The quality control reviewer, Chen Wenlong, has been with Deloitte since 2005 and will also provide services starting in 2025 [3][4]. - All key personnel have not faced any criminal or administrative penalties in the past three years, ensuring their independence [4]. Group 4: Approval Process - The audit committee has reviewed and approved the proposal to appoint Deloitte Huayong, confirming the firm's qualifications and independence [6]. - The board of directors unanimously approved the proposal, which will be submitted for shareholder approval [6]. - The appointment will take effect upon approval by the shareholders' meeting [6].