Cloud Live Technology Group Co.Ltd(002306) : Reply of Lixin Zhonglian Certified Public Accountants (special general partnership) to the inquiry letter on the annual report of Cloud Live Technology Group Co.Ltd(002306) 2021: the inquiry letter on the annual report of Cloud Live Technology Group Co.Ltd(002306) (hereinafter referred to as the “inquiry letter”) sent by your department has been received by the Management Department of listed companies of Shenzhen Stock Exchange and transferred from Cloud Live Technology Group Co.Ltd(002306) (hereinafter referred to as ” Cloud Live Technology Group Co.Ltd(002306) ” or “the company”), And carefully studied the questions related to the accountant’s reply in the inquiry letter. The replies to the inquiry letter are as follows: first, the annual report shows that your company’s operating revenue in 2021 was 317172100 yuan, a year-on-year increase of 16.59%; The net profit attributable to the shareholders of the listed company was 4.747 million yuan, an increase of 141.82% year-on-year The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was -139800 yuan, an increase of 72.96% year-on-year; The net cash flow from operating activities was -391618 million yuan, a year-on-year decrease of 366.86%. Your company’s net profit after deducting non recurring profit and loss has been negative for nine consecutive years. The annual audit accountant shall check and give clear opinions. 1) Explain the reasons and rationality of the deterioration of cash flow and mismatch with net profit