Lead Eastern Investment Co.Ltd(000673) : Announcement on the proposed appointment of accounting firm

Securities code: 000673 securities abbreviation: * ST contemporary Announcement No.: 2022-009 Lead Eastern Investment Co.Ltd(000673)

Announcement on the proposed appointment of accounting firm

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.

Special tips:

Lead Eastern Investment Co.Ltd(000673) (hereinafter referred to as “the company” or “the company”) the type of audit opinion on the 2020 financial report is an unqualified audit report with “significant uncertainties related to going concern”.

1、 Basic information of the accounting firm to be employed

(I) institutional information

1. Basic information

Organization Name: sigma Certified Public Accountants (special general partnership)

Organization form: special general partnership

Historical evolution: Sigmar Certified Public Accountants (special general partnership) is a large comprehensive accounting firm restructured and established on the basis of the original Xi’an accounting firm (one of the eight earliest accounting firms in China) in 1998. On June 27, 2013, it was approved to be transformed into a special general partnership accounting firm by Shaanxi Provincial Department of Finance in Shaanxi Finance Office [2013] No. 28 document. On June 28, 2013, with the approval of Xi’an Administration for Industry and commerce, sigma Certified Public Accountants (special general partnership) was registered and established.

Securities service business: engaged in securities service business. In 1994, it obtained the securities and futures related business license of accounting firm issued by the Ministry of Finance and China Securities Regulatory Commission. It is one of the earliest accounting firms engaged in securities service business in China. On November 2, 2020, the Ministry of Finance and China Securities Regulatory Commission announced the list and basic information of accounting firms engaged in securities service business, and sigma became the first batch of accounting firms engaged in securities service business.

Registered address: 6th floor, foreign affairs building, No. 1 Chanba Avenue, Chanba Ecological District, Xi’an, Shaanxi Province

Chief partner of sigma Certified Public Accountants (special general partnership): LV Hua; By the end of 2020

Number of partners: 52, number of Certified Public Accountants: 259, number of certified public accountants who have signed the audit report of securities service business: 130.

The business income of Sigmar Certified Public Accountants (special general partnership) in 2020 was 431397600 yuan, including 347872000 yuan from audit business and 134143000 yuan from securities business.

Provide audit services for 32 listed companies in 2020; The total charge is 62.4859 million yuan; The main industries involved include: manufacturing, mining, construction, water conservancy, environment and public facilities management, agriculture, forestry, animal husbandry and fishery. There are no audit clients of Listed Companies in the same industry.

2. Investor protection ability

At the end of 2020, Sigmar Certified Public Accountants (special general partnership) purchased occupational insurance with a cumulative compensation limit of 120 million yuan, which is in line with the relevant provisions of the Interim Measures for professional liability insurance of Certified Public Accountants (CK [2015] No. 13), and the professional liability compensation capacity can cover the civil liability caused by audit failure. Sigmar Certified Public Accountants (special general partnership) has not undertaken civil liability in civil litigation related to practice in the past three years.

3. Integrity record

Sigmar Certified Public Accountants (special general partnership) has not been subject to criminal punishment for its practice in the past three years, but has been subject to administrative punishment once, supervision and management measures four times and self-discipline supervision measures twice. In the past three years, the employees of the firm have not been subject to criminal punishment due to their practice behavior. Two employees have been subject to administrative punishment once, seven employees have been subject to supervision and management measures once, and two employees have been subject to self-discipline supervision measures once.

(II) project information

1. Project member information

Name and qualification of the members of the project team, whether they have engaged in certificate practice or not

Securities service business

Since 2004, he has been engaged in the business of certified public accountants until

It is now owned by Jiangxi Haiyuan composite material technology Co., Ltd

Anhui jieyongda Intelligent Machine Co., Ltd

The project partner Tang Guibao certified public accountants Co., Ltd. and Shanghai Yucheng polymer materials Co., Ltd

Ltd. and more than 10 other companies provide Chinese new year reports

Audit services and other securities services. From 2020

Practicing in the exchange and signing the examination and approval of Listed Companies in recent three years

In 2017, he engaged in auditing and listed companies

Audit of the company and listed companies, registered as

He is a certified public accountant and has been employed by Jieyong, Anhui Province

Signed and registered in this phase: Da Intelligent Machine Co., Ltd. and Shanghai Yucheng

Ding Chunchen certified public accountant is

Provided by accountant polymer materials Co., Ltd

Provided securities services such as annual report audit services. two thousand and twenty

He began to practice in the Institute in and signed and listed in the past three years

3 audit reports of the company.

Currently, Sigmar Certified Public Accountants (special general)

Managing partner, joined Greece in 1995

Gemma certified public accountants, December 1997

Certified public accountant in China, 2000

Project quality control began to be engaged in the professional service of audit of Listed Companies in

Qiu Chenghong certified public accountant is

Responsible for human affairs, in audit, enterprise restructuring and enterprise consolidation

Acquisition and reorganization, IPO, refinancing, etc

Rich practice experience. Listed companies signed in the last three years

The company has 16 audit reports and reviewed the reports of listed companies

Report 9.

2. Integrity record

Tang Guibao, the project partner to be signed by sigma, Ding Chunchen, the certified public accountant to be signed, and Qiu Chenghong, the reviewer of project quality control, have not been subject to criminal punishment, administrative punishment, administrative supervision measures and self-discipline punishment in the past three years. 3. Independence

Sigma and its employees do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants.

4. Audit fees. The current audit cost is 3 million yuan, including 2 million yuan of audit cost and 1 million yuan of internal control audit cost. The audit fee in this period has increased significantly compared with that in the previous period, which is due to the increase in the workload of the newly appointed accounting firm.

2、 Procedures to be performed by the accounting firm to be renewed

(I) the audit committee of the board of directors of the company deliberated and approved the proposal on the proposed appointment of accounting firm. After consulting the qualification certificate and relevant information of Sigmar accounting firm (special general partnership), the Audit Committee believes that Sigmar accounting firm (special general partnership) has due professional competence, investor protection ability Independence and good integrity, and agreed to submit the proposal to the board of directors for deliberation.

(II) the independent directors of the company gave their prior approval opinions on the proposal on the proposed appointment of an accounting firm: after verification, we believe that Sigmar accounting firm (special general partnership) has the qualification for auditing securities and futures related businesses, has many years of experience and ability to provide audit services for listed companies, and can meet the requirements of the company’s financial audit, We agree to employ Sigmar Certified Public Accountants (special general partnership) as the audit institution of the company in 2021 and submit this proposal to the 34th meeting of the eighth board of directors for deliberation. Independent opinions of independent directors on the proposal on the proposed appointment of accounting firm:

After verification, we believe that Sigmar Certified Public Accountants (special general partnership) has the qualification for auditing securities and futures related businesses, has many years of experience and ability to provide audit services for listed companies, and can meet the requirements of the company’s financial audit. The decision-making procedure of appointing an audit institution this time is legal and compliant. We agree to employ Sigmar Certified Public Accountants (special general partnership) as the audit institution of the company in 2021 and submit it to the first extraordinary general meeting of shareholders in 2022 for deliberation.

(III) the company held the 34th meeting of the 8th board of directors on February 21, 2022, and deliberated and adopted the proposal on the proposed appointment of accounting firm with 9 affirmative votes, 0 negative votes and 0 abstention votes.

(IV) the renewal of the audit institution needs to be submitted to the company’s first extraordinary general meeting in 2022 for deliberation.

3、 Documents for future reference

1. Resolution of the 34th meeting of the 8th board of directors of the company.

2. Supporting documents for the performance of the duties of the audit committee.

3. The independent directors’ prior approval opinions on the proposed appointment of the accounting firm, and the independent directors’ independent opinions on matters related to the 34th meeting of the eighth board of directors.

Lead Eastern Investment Co.Ltd(000673) board of directors

February 21, 2022

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