Upon completion of the audit work of the Company for the year of 2023, PricewaterhouseCoopers, overseas auditor of the Company (“PwC HK”) and PricewaterhouseCoopers Zhong Tian LLP, domestic auditor of the Company (“PwC Zhong Tian”) (collectively referred to as “PwC”), have provided audit services to the Company for more than 10 consecutive years that exceeds the maximum period stipulated in the “Administrative Measures for State-owned Enterprises and Listed Companies to Select and Engage Accounting Firms*” (《國有企業、上市公司選聘會計師事務所管理辦法》) issued by the Ministry of Finance of the People’s Republic of China, the State-owned Assets Supervision and Administration Commission of the State Council and the China Securities Regulatory Commission on 4 May 2023. Therefore, the Company shall change its accounting firms for the year of 2024.

In this regard, the board of directors of the Company (the “Board”), after obtaining the recommendation of the audit committee of the Board (“AC”), convened the 102nd meeting of the ninth session of the Board (the “Meeting”) on 28 April 2024. At the Meeting, all the directors considered and unanimously passed the resolution, agreeing to the appointment of Cheng & Cheng Limited (“Cheng & Cheng”) and Zhongxinghua Certified Public Accountants LLP (“Zhongxinghua”) as the overseas and domestic auditors of the Company’s financial report for the year of 2024 respectively, and the engagement of Zhongxinghua as the internal control auditor of the Company for the year of 2024, for a term of one year until the conclusion of the 2024 annual general meeting of the Company. The proposed annual audit fees shall be RMB6.20 million (tax inclusive), comprising financial report audit and review service fees of RMB5.42 million (tax inclusive) and internal control audit fee of RMB780,000 (tax inclusive), subject to the consideration and approval at the 2023 annual general meeting (the “AGM”) of the Company.