Core Viewpoint - The company intends to reappoint Lixin Certified Public Accountants (Special General Partnership) as its auditing firm for the fiscal year 2025, pending approval from the shareholders' meeting [1][8]. Group 1: Basic Information about the Auditing Firm - Lixin Certified Public Accountants was founded in 1927 and is a member of the international accounting network BDO [1]. - As of the end of 2024, Lixin has 296 partners, 2,498 registered accountants, and a total of 10,021 employees [2]. - Lixin provided annual audit services to 693 listed companies in 2024, with audit fees totaling 854 million yuan [2]. Group 2: Financial and Legal Standing - Lixin's revenue from securities services was 1.505 billion yuan in 2024, with 367.2 million yuan earned by registered accountants who signed securities service audit reports [2]. - The firm has set aside a professional risk fund of 171 million yuan and has a cumulative compensation limit of 1.05 billion yuan for professional insurance [2]. - In the past three years, Lixin has faced five administrative penalties and 43 supervisory measures, but has not faced any criminal penalties [5]. Group 3: Audit Fee Structure - The audit fee for 2024 was set at 1.65 million yuan, which includes 1.3 million yuan for financial accounting report audits and 350,000 yuan for internal control audits [6]. - The company plans to pay Lixin a similar amount for the 2025 audit, with the final decision on any adjustments left to the company's president [7]. Group 4: Approval Process - The Audit and Risk Management Committee of the Board approved the reappointment of Lixin with a unanimous vote [7]. - The Board of Directors also approved the reappointment with a unanimous vote, and the matter will be submitted to the shareholders' meeting for final approval [8].

Core Viewpoint - The article discusses the significant increase in the number of listed companies in Shenzhen changing their auditing firms, primarily due to regulatory penalties affecting several major accounting firms [2][10]. Group 1: Audit Firm Changes - In 2024, 103 listed companies in Shenzhen changed their auditing firms, surpassing the total of 98 changes in 2022 and 2023 combined [3][10]. - The proportion of companies changing auditors has increased significantly, with 35, 63, and 103 companies changing firms in 2022, 2023, and 2024 respectively [10]. Group 2: Impact on Major Accounting Firms - Major firms such as Daxin, PwC, and Tianzhi International experienced a drastic reduction in the number of projects they undertook, with Daxin's projects dropping from 49 to 6 (a decrease of 87.76%), PwC's from 12 to 3 (a decrease of 75%), and Tianzhi's from 22 to 10 (a decrease of 54.55%) [4][10]. - The article highlights that the loss of clients for these firms is attributed to regulatory penalties and the resulting loss of qualifications [9]. Group 3: Audit Reports and Fees - As of April 30, 2025, all 423 listed companies in Shenzhen submitted their 2024 annual reports and audit reports on time, with 407 receiving standard unqualified audit opinions [5]. - The total audit fees for the 414 companies that disclosed their fees amounted to 862 million yuan, with an average fee of 2.0376 million yuan, reflecting a slight increase from the previous year's average of 2.0116 million yuan [6][7]. - Among the listed companies, 189 experienced an increase in audit fees, with the highest increase reaching 172.73%, while 94 companies saw a decrease, with the largest drop being 57.14% [7]. Group 4: Long-term Auditor Relationships - There are 57 listed companies in Shenzhen that have retained the same auditing firm for over 10 years, accounting for 13.48% of the total [11]. - One company has maintained the same auditor for 24 years and has announced plans to change its auditing firm [11].

Core Viewpoint - The company intends to reappoint Rongcheng Accounting Firm as its auditing institution for the year 2025, pending approval from the upcoming shareholders' meeting [1][8]. Group 1: Audit Institution Information - Rongcheng Accounting Firm, established in August 1988 and restructured in December 2013, is one of the earliest firms authorized to provide securities services in China [2]. - The firm has a total of 212 partners and 1,552 registered accountants, with 781 having signed securities service audit reports as of December 31, 2024 [2]. Group 2: Financial Performance - In 2024, Rongcheng Accounting Firm reported total revenue of 251.03 million yuan, with audit service revenue at 234.86 million yuan and securities and futures service revenue at 123.76 million yuan [3]. - The firm handled the annual audit for 518 listed companies in 2024, with total audit fees amounting to 62.05 million yuan [3]. Group 3: Audit Committee and Board Approval - The audit committee unanimously agreed to reappoint Rongcheng Accounting Firm, citing its independence, professional competence, and investor protection capabilities [7]. - The board of directors approved the reappointment with a vote of 7 in favor, 0 against, and 0 abstentions, emphasizing the firm's adherence to auditing standards during its previous term [8].

Core Viewpoint - The company has appointed KPMG Huazhen as the auditing firm for its 2024 annual report, and an evaluation of KPMG Huazhen's performance has been conducted, indicating compliance, independence, and diligence in their auditing process [1][4]. Group 1: Qualifications and Performance - KPMG Huazhen was established in August 1992 and became a special general partnership in July 2012, with its headquarters in Beijing [1]. - As of December 31, 2024, KPMG Huazhen has 241 partners and 1,309 registered accountants, with over 300 accountants having signed securities service audit reports [2]. - KPMG Huazhen's audited business revenue for 2023 exceeded RMB 4.1 billion, with audit service revenue surpassing RMB 3.9 billion [2]. Group 2: Audit Execution and Quality Management - KPMG Huazhen conducted audits on the company's financial reports and internal controls, concluding that the financial statements fairly reflect the company's financial position as of December 31, 2024 [4][5]. - The audit team maintained independence and followed auditing standards, with no unresolved professional opinion differences during the audit process [5][6]. - KPMG Huazhen has a quality management system in place, ensuring thorough execution of audit procedures without identifying significant issues during the 2024 audit [6][8]. Group 3: Human Resources and Risk Management - The audit team consists of experienced members with relevant qualifications, ensuring a high level of expertise in handling the audit [8]. - KPMG Huazhen has a professional insurance coverage and risk fund exceeding RMB 200 million, complying with legal requirements [8].