Renewal of Accounting Firm Engagement

Ming Yang Smart Energy Group Ltd

30 October 2026

 

MING YANG SMART ENERGY GROUP LIMITED

(GDR under the symbol: "MYSE")

(a joint stock company established under the laws of the People's Republic of China with limited liability)

Announcement on Renewal of the Engagement of the Accounting Firm

Important:

l Name of the accounting firm proposed to be appointed: Ernst & Young Hua Ming LLP (Special General Partnership)

Ming Yang Smart Energy Group Limited (hereinafter referred to as the "Company") convened the second meeting of the fourth Board on October 29, 2026, at which the Proposal on Renewal of the Engagement of the Accounting Firm was considered and approved. The Company proposed to appoint Ernst & Young Hua Ming LLP (Special General Partnership) (hereinafter referred to as "Ernst & Young Hua Ming") as the Company's financial and internal control auditor for the year 2026, and agreed to submit the proposal to the Shareholders' Meeting for consideration. The relevant matters are hereby announced as follows:

I. Basic information regarding the proposed appointment of the accounting firm

(I) Organization information

1. Basic information

Ernst & Young Hua Ming was established in September 1992 and completed its localization transformation in August 2012, transforming from a Sino-foreign cooperative limited liability firm into a special general partnership firm. Ernst & Young Hua Ming is headquartered in Beijing, and its registered address is Room 01-12, 17th Floor, Ernst & Young Building, Oriental Plaza, No. 1 East Chang'an Street, Dongcheng District, Beijing.

As of the end of 2025, it had 249 partners, and the chief partner was Mr. Anning Mao. Ernst & Young Hua Ming has always attached importance to talent training. As of the end of 2025, it had more than 1,700 practicing certified public accountants (CPAs). Among them, more than 1,500 had experience in securities-related business services, and more than 550 had signed audit reports for securities service business.

Ernst & Young Hua Ming's audited total business revenue for 2025 was RMB 6.501 billion, of which revenue from audit services was RMB 6.284 billion, revenue from domestic securities services was RMB 1.693 billion, and the total revenue from domestic and overseas securities services-related businesses was RMB 3.40 billion. In 2025, it had 158 A-share listed company clients in terms of annual report auditing, with total fees amounting to RMB 1.611 billion. These listed companies primarily operate in industries such as manufacturing, finance, wholesale and retail, information transmission, software and information technology services, mining, etc. It had 92 listed company audit clients in the same industry as the Company.

2. Investor protection capability

Ernst & Young Hua Ming has sound investor protection capability. It has accrued a professional risk fund and purchased professional liability insurance in accordance with relevant laws and regulations, covering the Beijing Head Office and all branches. The sum of the cumulative limits of indemnity of the accrued professional risk fund and the purchased professional liability insurance exceeds RMB 200 million. Ernst & Young Hua Ming has not incurred any civil liabilities due to civil lawsuits related to professional practices in the past three years.

3. Integrity record

In the past three years, Ernst & Young Hua Ming received 0 criminal penalties, 0 administrative penalties, 3 supervisory management measures, 1 self-regulatory measure, and 0 disciplinary sanctions due to professional practices. In the past three years, 19 practitioners received 0 criminal penalties, 2 administrative penalties, 4 supervisory management measures, 2 self-regulatory measures, 1 industry disciplinary action, and 0 disciplinary sanctions due to their practicing behaviors; 2 practitioners each received 1 administrative supervisory measure due to personal behavior in the past three years, which did not involve the quality of professional practices on audit projects. According to the provisions of relevant laws and regulations, the aforementioned matters do not affect Ernst & Young Hua Ming's ability to continue undertaking or performing securities service business and other business.

(II) Project information

1. Basic information

Project Partner and Signing CPA: Mr. Boyuan Wen, who became a CPA in 2010, started to engage in audits of listed companies in 2005, started practicing in Ernst & Young Hua Ming in 2004, and started providing audit services for the Company in 2025; signed/reviewed annual reports/internal control audit reports for listed companies in general equipment manufacturing, special equipment manufacturing, computer, communication and other electronic equipment manufacturing, and wholesale industries in the past three years.

Signing CPA: Mr. Yucheng Huang, who became a CPA in 2016, started to engage in audits of listed companies in 2017, started practicing in Ernst & Young Hua Ming in 2013, and started providing audit services for the Company in 2025; signed annual reports/internal control audit reports for listed companies in general equipment manufacturing, and electrical machinery and equipment manufacturing in the past three years.

Project Quality Control Reviewer: Ms. Xinxin Hao, who became a CPA in 2003, started to engage in audits of listed companies in 2005, started practicing in Ernst & Young Hua Ming in 2017, and started providing audit services for the Company in 2025; signed/reviewed annual reports/internal control audit reports for listed companies in manufacturing and medicine in the past three years.

2. Integrity record

The Project Partner, Signing CPA, and Project Quality Control Reviewer have not received any criminal penalties due to professional practices in the past three years, nor have they received any administrative penalties or any supervisory management measures from the CSRC and its local offices, industry authorities, etc., nor have they received any self-regulatory measures or disciplinary sanctions from self-regulatory organizations such as stock exchanges or industry associations.

3. Independence

Ernst & Young Hua Ming, as well as the above Project Partner, Signing CPA, and Project Quality Control Reviewer, have not violated the independence requirements of the Independence Standards for Chinese Certified Public Accountants No. 1 and the Code of Ethics for Chinese Certified Public Accountants.

4. Audit fees

The audit fees will follow the principles of fair and reasonable market pricing, comprehensively considering factors such as the Company's business scale, industry, complexity of accounting treatment, the audit staff required for the financial statement and internal control audits, and the workload involved. The final audit fees will be determined with reference to the accounting firm's fee standards.

The Board requests the Shareholders' Meeting to authorize the Company's management to determine the audit fees for the year 2026 (including fees for the audit of the financial reports and internal controls) based on the above principles and to execute related service agreements and other matters.

II. Procedures performed for the proposed appointment of the accounting firm

(I) Review opinions of the Audit Committee

The Audit Committee of the Board reviewed the professional competence, investor protection capability, and independence status of Ernst & Young Hua Ming, and believed that Ernst & Young Hua Ming possesses complete professional qualifications, rich experience, professional service capabilities and investor protection capabilities, and that the accounting firm and relevant auditing personnel meet the independence requirements of relevant laws and regulations and have a good track record of integrity. The Audit Committee agreed to submit the proposal to the Board for consideration.

(II) Consideration by the Board

At the second meeting of the fourth Board convened by the Company on October 29, 2026, the Proposal on Renewal of the Engagement of the Accounting Firm was deliberated and approved, agreeing to appoint Ernst & Young Hua Ming as the auditor for the Company's 2026 financial report and internal control, and requesting the Shareholders' Meeting to authorize the Company's management to determine the 2026 audit fees based on fair and reasonable pricing principles and other relevant factors (including fees for the audit of the financial reports and internal controls) and sign relevant service agreements and other matters.

(III) Effective date

The appointment of the accounting firm is subject to the consideration of the Shareholders' Meeting, and shall take effect from the date of approval by the Shareholders' Meeting.

   Ming Yang Smart Energy Group Limited

October 30, 2026

 

END