Henan Liliang Diamond Co.Ltd(301071) : special explanation on the occupation of funds by controlling shareholders and other related parties in Henan Liliang Diamond Co.Ltd(301071) 2021

Henan Liliang Diamond Co.Ltd(301071)

Occupation of funds by controlling shareholders and other related parties

Special description

Dahuhezi [2022] No. Tianjin Binhai Energy & Development Co.Ltd(000695)

Dahua Certified Public Accountants (special general partnership)

DaHuaCertifiedPublicAccountants(SpecialGeneralPartnership)

Henan Liliang Diamond Co.Ltd(301071)

Special instructions on the occupation of funds by controlling shareholders and other related parties

(as of December 31, 2021)

Table of contents page 1. Special 1-2 description of the occupation of funds by controlling shareholders and other related parties

2、 Henan Liliang Diamond Co.Ltd(301071) 2021 summary of non operating capital occupation and other related capital transactions

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Controlling shareholders and other related parties

Special description of fund occupation

Dahuhezi [2022] No. Tianjin Binhai Energy & Development Co.Ltd(000695) Henan Liliang Diamond Co.Ltd(301071) all shareholders:

We have been entrusted to audit the financial statements of Henan Liliang Diamond Co.Ltd(301071) (hereinafter referred to as power shares) in 2021, including the consolidated and parent company's balance sheet as of December 31, 2021, the consolidated and parent company's income statement in 2021 The consolidated and parent company's cash flow statement, the consolidated and parent company's statement of changes in shareholders' equity and the notes to the financial statements, and the unqualified audit report of dahuashen Zi [2022] No. 00091 standard was issued on February 23, 2022.

In accordance with the provisions of the regulatory guidelines for listed companies No. 8 - regulatory requirements for capital exchanges and external guarantees of listed companies (CSRC announcement [2022] No. 26) and the self regulatory guidelines for GEM listed companies of Shenzhen Stock Exchange No. 1 - business handling issued by Shenzhen Stock Exchange, Issue a special explanation on the summary table of non operating capital occupation and other related capital transactions in 2021 (hereinafter referred to as the "summary table") prepared by power shares.

It is the responsibility of the management of power shares to truthfully prepare and disclose the summary and ensure its authenticity, legitimacy and integrity. We have checked the information contained in the summary sheet with the accounting information reviewed and the relevant contents of the audited financial statements when we audit the 2021 financial statements of power shares, and found no inconsistency in all major aspects. Except for the power unit

Dahuhezi [2022] No. Tianjin Binhai Energy & Development Co.Ltd(000695) special description of fund occupation of related parties

In addition to the audit procedures related to related party transactions carried out in the audit of financial statements in 2021, we did not carry out additional audit procedures for the information contained in the summary. In order to better understand the occupation of funds by the controlling shareholders and other related parties of power shares in 2021, the attached summary table should be read together with the audited financial statements.

This special instruction is issued in accordance with the requirements of China Securities Regulatory Commission and its dispatched offices and Shenzhen Stock Exchange, and shall not be used for other purposes. The consequences caused by improper use have nothing to do with the certified public accountants and accounting firms performing the business.

Annex: Henan Liliang Diamond Co.Ltd(301071) 2021 summary of non operating capital occupation and other related capital transactions Dahua Certified Public Accountants (special general partnership) Chinese Certified Public Accountants:

Wu Shaohua, Beijing, China Certified Public Accountant:

Sang Dongxue February 23, 2002

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