According to the Administrative Measures for Selection and Employment of Accounting Firms by State-Owned Enterprises and Listed Companies [Caihui [2023] No. 4] and other relevant regulations, WCON Electronics (Guangdong) Co., Ltd (Stock code: 301328, hereinafter referred to as the ‘Company’) intends to select and employ an accounting firm to provide auditing services for the year of 2024 in the manner of competitive negotiation, and hereby announces the following matters related to the selection and employment:

I. Services

(i) Issuance of annual audit reports for enterprises within the scope of services according to the needs of the Company;

(ii) Conducting annual internal control audits and issuing internal control audit reports for enterprises within the scope of services;

(iii) Issuance of a special audit statement on the appropriation of funds by the company's controlling shareholders and other related parties to enterprises within the scope of services (if any);

(iv) Issuing special audit reports on the deposit and use of fund-raising funds for enterprises within the scope of services;

(v) Issuance of other relevant audit explanations, verification opinions and attestation reports required by the regulatory authorities to be issued by the annual audit firm;

(vi) Providing financial consulting services for the Company's daily accounting and other services as required.

II. Qualification Requirements for Candidate Firms

(i) Possessing independent legal personality and the ability to fulfil the contract, with practicing qualifications recognised by the relevant industry regulatory authorities, and having been practicing for more than three years (accounting firms converted from limited liability system to special general partnership or general partnership system will continue to operate for the same number of years as they did before the conversion);

(ii) Having a fixed workplace, a sound organisational structure, a relatively complete and effective implementation of internal management and control system, having passed the annual inspection (including re-inspection) in the previous three years or having been confirmed to be in compliance with the requirements by the industry regulatory authorities after rectification, having at least one audit performance of a listed enterprise during the practice period in the recent three years (from 1 January 2021 to the present), and not having been subjected to criminal penalties in the recent three years for unlawful securities and futures practice, and The number of administrative penalties or disciplinary actions does not exceed twice;

(iii) The proposed project leader must have the qualification of a certified public accountant in practice, with more than five years (including) of experience in financial auditing of listed companies as the lead auditor (provide proof of the relevant performance of the project leader), and at least five staff members of the proposed project service team have more than three years of experience in auditing listed companies. The proposed project leader and all members of the project team must be regular employees of the firm who are on board, within the contract period and can fully meet the service period of the project, and at the same time, they shall not have any criminal record of bribery and acceptance of bribes;

(iv) Have a good record of practice quality, complete the audit tasks on time and with quality, no major audit quality problems and bad records in the audit work, and have the ability to bear the corresponding audit risks;

(v) Have a good record of professional ethics and social reputation, and conscientiously implement the laws, regulations and policies on audit and assurance;

(vi) Be able to keep the commercial secrets of the enterprises to be served and maintain national financial information security.

III. Registration Requirements for Candidate Firms

(i) List of materials to be submitted

1. A power of attorney authorising the legal representative to participate in this competitive negotiation and a photocopy of the valid ID card of the authorised person (if the firm applying for participation in the competitive negotiation is a branch office, the sole power of attorney of the head office for this project shall be provided);

2. Photocopy of valid business licence copy (if the firm applying for competitive negotiation is a branch office institution, both the head office and the branch office shall be provided);

3. A valid certificate of practice of the accounting firm issued by the financial department at or above the provincial level, and with the licence to engage in securities and futures related service business and report to the securities regulatory authority of the State Council and the relevant competent authorities of the State Council for filing documents;

4. A statement that there are no major audit quality problems and bad records in the audit work in 2021-2023, and no major violations of laws and regulations;

5. The list of team personnel to be provided with this audit service, the resumes and photocopies of personal qualification certificates of the project leader, the signing accountant and the main project personnel;

6.Relevant audit performance documents; relevant performance documents should be able to reflect the name of the firm, the project leader, the name of the signing accountant, including but not limited to the audit engagement letter, the key pages of the audit report;

7. The offer of this audit service;

8.Other documents that can prove compliance with the qualification requirements.

9.The above materials are required to be individually stamped, a larger number of materials can be used to cover the first page of the official seal, the whole with a sewn seal way.

(ii) Registration Method

Candidate accounting firms participating in the competitive negotiation are requested to send the electronic version of the materials (scanned copies of signed documents) to the following email address before 17:00 on 13th October 2024: cwdg@wcon.com

Contact Person: Securities Department of the Company

Tel: 0769-85358915

Contact address: No. 15, Daning Wenming Road, Humen Town, Dongguan City, Guangdong Province, China

(iii） Competitive negotiation time

The Company will issue invitations by 14th October 2024 to the candidate accounting firms which have passed the preliminary vetting. Firms receiving the invitation are requested to bring the original materials to the Company at the agreed time for on-site communication and exchange.

 IV. Announcement Channels

  Company website: www.wcon.com

WCON Electronics (Guangdong) Co., Ltd

8th October 2024