Da'an Gene: Evaluation report on the accounting firm's performance of duties in 2025
Guangzhou Da'an Gene Co., Ltd.
Evaluation report on the accounting firm’s performance of duties in 2025
In accordance with the provisions and requirements of the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Code of Governance of Listed Companies", "Measures for the Selection and Employment of Accounting Firms by State-owned Enterprises and Listed Companies", "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations of Main Board Listed Companies" and the "Articles of Association", Guangzhou Da'an Gene Co., Ltd. (hereinafter referred to as the "Company") has evaluated the accounting firm's performance of duties in 2025. The details are as follows:
1. Basic situation of accounting firms in 2025 annual audit
(1) Basic information of accounting firms
Grant Thornton Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Grant Thornton") was formerly the Beijing Accounting Firm established in 1981 by the Beijing Municipal Finance Bureau. In June 1998, it was decoupled and restructured and merged with the Kyoto Accounting Firm. In 2011, it was converted into a special general partnership with the approval of the Beijing Municipal Finance Bureau. In 2012, it was renamed Grant Thornton Certified Public Accountants (Special General Partnership). The chief partner of Grant Thornton is Li Huiqi, and its registered address is 5th Floor, Saite Plaza, No. 22 Jianguomenwai Street, Chaoyang District, Beijing. Grant Thornton has obtained a practicing certificate issued by the Beijing Municipal Bureau of Finance (Certificate No.: NO 0014469). It is one of the first accounting firms in China to obtain securities and futures-related business qualifications, the first batch of accounting firms to be approved to engage in the auditing business of extra-large state-owned enterprises, and the first batch of accounting firms to obtain financial auditing qualifications. It has also registered with the U.S. Public Company Accounting Oversight Board (PCAOB). Grant Thornton has been engaged in the securities services business for more than 20 years and is the Chinese member firm of Grant Thornton.
As of the end of 2025, Grant Thornton has nearly 6,000 employees, including 244 partners, 1,361 certified public accountants, and more than 400 certified public accountants who have signed securities service business audit reports.
Grant Thornton's business income in 2024 was 2.614 billion yuan (2,614.2745 million yuan), including 2.103 billion yuan (2.1032695 million yuan) from auditing business and 482 million yuan (482.4027 million yuan) from securities business. There are 297 audit clients of listed companies in the 2024 annual report. The main industries include manufacturing; information transmission, software and information technology service industry; wholesale and retail industry; electricity, heat, gas and water production and supply industry; transportation, warehousing and postal industry, with a total fee of 386 million yuan (385.5897 million yuan); 166 company clients listed in the 2024 annual report The company's main industries include manufacturing; information transmission, software and information technology services; scientific research and technical services; wholesale and retail; culture, sports and entertainment; leasing and business services; audit fees are 41.5624 million yuan; and it serves 27 audit clients of listed companies/New OTC Market companies in the same industry.
(2) Investor protection capabilities
Grant Thornton has purchased occupational insurance with a cumulative compensation limit of 900 million yuan. The purchase of occupational insurance complies with relevant regulations. The occupational risk fund at the end of 2024 is 18.7729 million yuan.
Grant Thornton does not need to bear civil liability for any civil lawsuits related to its practice that have been concluded in the past three years.
(3) Integrity record
In the past three years, Grant Thornton has been subject to 0 criminal penalties, 5 administrative penalties, 19 supervisory and management measures, 13 self-regulatory supervisory measures and 3 disciplinary sanctions due to its professional conduct. No practitioners were subject to criminal penalties for their professional conduct, and 81 practitioners were punished for their professional conduct, including 6 administrative penalties, 20 administrative supervision measures, 11 self-regulatory supervision measures, and 6 disciplinary sanctions.
2. Project information
(1) Basic information
Project partner: Yang Zhenyu, became a certified public accountant in 1998, started auditing listed companies in 2009, started practicing in the firm in 2009, and started providing auditing services to the company in 2024. In the past three years, she has signed 2 audit reports for listed companies and 4 audit reports for companies listed on the New OTC Market.
Signing CPA: Cui Yanyan, became a CPA in 2003, started auditing listed companies in 2010, started practicing in the firm in 2004, and started providing auditing services to the company in 2024. In the past three years, she has signed 2 audit reports for listed companies and 4 audit reports for listed companies.
Project quality control reviewer: Jiang Yonghui, became a certified public accountant in 1998, started auditing listed companies in 1998, started practicing in the firm in 1998, and started providing auditing services to the company in 2024. In the past three years, he has signed 3 audit reports for listed companies and 3 audit reports for companies listed on the New OTC Market. In the past three years, it has reviewed 5 audit reports of listed companies and 3 audit reports of companies listed on the New OTC Market.
(2) Records of independence and integrity of project team members.
(1) Integrity record
The project partners, signing certified public accountants, and project quality control reviewers have not been criminally punished for their professional conduct in the past three years, have not been subject to administrative penalties, supervisory management measures, and self-regulatory measures by the China Securities Regulatory Commission and its dispatched agencies, industry authorities, etc., and have not been subject to self-regulatory measures or disciplinary sanctions by self-regulatory organizations such as stock exchanges and industry associations.
(2) Independence
There are no circumstances that may affect the independence of Grant Thornton, its project partners, signing certified public accountants, and project quality control reviewers.
3. Procedures for appointing an accounting firm
On April 22, 2025, the company held the fifth meeting of the Audit Committee of the eighth board of directors in 2025, which reviewed and approved the "Proposal on Renewing the Appointment of Grant Thornton Accounting Firm (Special General Partnership) as the Company's Financial and Internal Control Audit Agency for 2025" and agreed to submit it to the Board of Directors for review.
On April 29, 2025, the company held the second extraordinary meeting of the eighth board of directors in 2025 and the first extraordinary meeting of the eighth board of supervisors in 2025 to consider and adopt the above proposal.
On May 15, 2025, the company held the first extraordinary shareholders' meeting in 2025 to review and approve the above proposal.
4. Duty performance of the accounting firm in the 2025 annual audit
In accordance with the "Audit Engagement Letter", following the "Audit Standards for Chinese Certified Public Accountants" and other professional norms and the company's 2025 annual report work arrangements, Grant Thornton audited the company's 2025 annual financial report and the effectiveness of the internal control of the financial report on December 31, 2025. At the same time, it verified the company's 2025 non-operating fund occupation and other related fund transactions, and operating income deductions and issued a special report.
After auditing, Grant Thornton believed that the company's financial statements were prepared in accordance with the Accounting Standards for Business Enterprises in all material aspects, and fairly reflected the company's consolidated and parent company's financial status as of December 31, 2025, as well as the consolidated and parent company's operating results and cash flows in 2025, and issued a standard unqualified audit report. After auditing, Grant Thornton believed that the company maintained effective internal control over financial reporting in all aspects in accordance with the "Basic Standards for Enterprise Internal Control" and relevant regulations, and issued a standard unqualified internal control audit report.
In the process of performing audit work, Grant Thornton formulated and implemented reasonable audit work plans and work plans, implemented effective quality management measures, and communicated with the company's management and governance regarding the independence of the accounting firm and audit project team members, audit scope, personnel and time arrangements, risks of material misstatements, audit results, etc.
5. Evaluation of accounting firm’s performance of duties
After evaluation, the company believes that Grant Thornton followed the principle of independent auditing during the company's 2025 annual financial report audit and internal control audit process, objectively, fairly and fairly evaluated the company's financial status, operating results and internal control effectiveness, worked diligently and responsibly, issued reports that were true, accurate and timely, and effectively fulfilled the responsibilities of an audit institution.
Board of Directors of Guangzhou Da'an Gene Co., Ltd.
April 27, 2026