Securities code: 600237 Securities for short: Tongfeng Electronic Announcement Number: Lin 2021-011

Anhui Tongfeng Electronics Co., LTD
Announcement on the renewal of the accounting firm 

I. Basic information about the accounting firm to be appointed

(1) Organization information
1. Basic information
Rongcheng Certified Public Accountants Firm (Special General Partnership) was renamed from Huapu Tianjian Certified Public Accountants Firm (Special General Partnership). It was originally established in August 1988 and restructed into a special general partnership on December 10, 2013. It is one of the earliest accounting firms in China to engage in securities service business and has been engaged in securities service business for a long time. Registered address: 901-22 to 901-26, Foreign Trade Building, No. 22, Fuchengmenwai Street, Xicheng District, Beijing. Chief Partner: Xiao Houfa.
2. Personnel information
As of December 31, 2020, Yung Cheng Certified Public Accountants had 132 partners and 1,018 certified public accountants, 445 of whom had signed audit reports on securities service business.
3. Business scale
The audited revenue of Rongcheng Certified Public Accountants in 2019 was RMB 105,7721,300, of which the audit revenue was RMB 82,969,100, and the securities and futures revenue was RMB 466,217,200.
Rongcheng CPA Firm undertook the audit business of 210 listed companies' annual reports in 2019, with a total audit fee of 25,290.04 yuan. Customers mainly focus on manufacturing (including but not limited to automobile and parts manufacturing, chemical raw materials and chemical products, electrical machinery and equipment, communications and other electronic equipment, special equipment, non-ferrous metal smelting and rolling processing industry, clothing, furniture, food and beverage) and information transmission, software and information technology services, wholesale and retail, construction, Transportation, warehousing and postal services, leasing and commercial services, culture, sports and entertainment, scientific research and technical services, electricity, heat, gas and water production and supply, finance, water, environmental and public facilities management and many other industries. The number of audit clients of Rongcheng CPA firm for listed companies in the same industry as Guilin Fuda Co., Ltd. is 138.
4. Investor protection ability
Rongcheng CPA Firm has purchased professional liability insurance for certified public accountants, and the purchase of occupational insurance conforms to relevant regulations; As of December 31, 2020, the cumulative liability compensation limit is 700 million yuan; In recent three years, there has been no relevant civil lawsuit for practicing behavior.
5. Integrity record
In recent three years, Rongcheng Certified Public Accountants has been punished for 0 times of criminal punishment, 0 times of administrative punishment, 1 time of supervision and management measures, 0 times of self-regulatory measures and 0 times of disciplinary punishment for its practice behavior.
Two practitioners have been subject to self-regulatory measures for the same client's practice behavior once during the past three years in Rongcheng CPA Firm; In the past three years, 11 employees have been subject to supervision and management measures once each during their practice in Rongcheng CPA Firm.
3 employees have been subject to supervision and management measures for the same client's practice behavior once during their practice in other accounting firms in recent three years; 4 practitioners have been subject to supervision and management measures once for each client's practice behavior during their practice in other accounting firms in the past three years.
(II) Information of project members
1. Personnel information
Project Partner/Accountant to be signed: Zhan Tiehua, a certified public accountant in China, has been engaged in auditing business of listed companies since 2000, and has been practicing in Rongcheng Certified Public Accountants since 2000, and has been providing auditing services for Tongfeng Electronics since 2017. In the past three years, he has signed audit reports of listed companies and listed companies such as Tongfeng Electronics, Zhongding Shares, Quanchai Power, Fuda Shares, Kouzi Cellar, Yingjiagong Wine, Home Jiayue, Aike Blue, etc.
Proposed quality control reviewer: Gu Xueshao, became a certified public accountant in China in 2006, began to engage in audit business of listed companies in 2007, and began to practice in Rongcheng Certified Public Accountants in 2007. In the past three years, I have reviewed the audit reports of many listed companies, such as Gold Mantis (002081.SZ), Sega Technology (002796.SZ) and Time Publishing (600551.SH).
Accountant to be signed: Wang Fengyan, a certified public accountant in China, has been engaged in audit work since 2012. She has provided securities services for many listed companies and listed companies, such as Bethel (603596), Quanchai Power (600218), Aofu Environmental Protection (688021), Haiming Technology (832825) and Innovation Shares (837935).
Accountant to be signed: Ye Lili, a Chinese certified public accountant, has been engaged in auditing since 2014, and has successively provided securities services for listed companies such as Tongfeng Electronics (600237).
2. Independence and integrity records of the above related personnel.
The signed certified public accountant Wang Fengyan and the project quality control reviewer Gu Xueshao have not been subject to criminal punishment, administrative punishment, supervision and management measures, self-regulatory measures or disciplinary punishment for their professional behavior in the past three years.
Project partner Zhan Tiehua has been subject to criminal punishment in recent three years due to his professional behavior, administrative punishment, supervision and management measures from China Securities Regulatory Commission, its dispatched agencies and industry competent authorities, and self-regulatory measures and disciplinary measures from stock exchanges, industry associations and other self-regulatory organizations, as detailed in the table below.

In recent three years, Ye Lili, a signed certified public accountant, has been subject to criminal punishment for her professional behavior, administrative punishment, supervision and management measures from China Securities Regulatory Commission (CSRC), its dispatched agencies and industry competent authorities, and self-regulatory measures and disciplinary measures from stock exchanges, industry associations and other self-regulatory organizations, as detailed in the table below.

(3) Audit fees
In 2020, the financial audit expense of Rongcheng Certified Public Accountants (special general Partnership) for the company will be RMB 1,200,000 yuan, and the internal control audit expense for the company will be RMB 30.00 yuan, totaling RMB 15,000.00 yuan.
In 2021, the company's audit fee pricing principle will determine the final audit fee according to the company's business scale, industry, complexity of accounting treatment and other factors, as well as the company's annual report audit personnel, input workload and the firm's fee standard.

Ii. Procedures to be performed by the accounting firm to be renewed

（1） Opinion of the Audit Committee
The Audit Committee of the Board of Directors believes that Rongcheng Certified Public Accountants (special general partnership), which has been engaged in securities and futures related businesses for a long time, has been the audit institution employed by the company since its listing. In its audit work for many years, it has followed the independent, objective and fair professional standards, and has successfully completed all the audit work entrusted by the company. The Audit Committee deliberated and passed the Proposal on Renewing the Employment of Accounting Firms, and agreed to continue to employ Rongcheng Accounting Firm (special general partnership) as the financial and internal control auditor of the Company in 2021.
（2） Opinions of independent directors
The Proposal on Renewing the Employment of Accounting Firms has been approved by the independent directors of the company in advance before being submitted to the Board of Directors for deliberation. The independent directors of the company have expressed their independent opinions as follows: Rongcheng Accounting Firm (special general partnership) has conscientiously and conscientiously performed the independent audit in a fair and objective manner during the audit of the company's annual financial and internal control in 2020, and has successfully completed the annual audit, We agree that the company will continue to employ Rongcheng Certified Public Accountants (special general partnership) as the company's financial and internal control auditor in 2021.
（3） Opinions of the Board of Directors
The fourth meeting of the ninth board of directors of the company reviewed and approved the Proposal on Renewing the Employment of Accounting Firm, and agreed to appoint Rongcheng Accounting Firm (special general partnership) as the company's financial and internal control audit agency in 2021, with a term of one year. It will also submit to the General Meeting of Shareholders of the Company to authorize the Board of Directors to determine its remuneration according to the actual business situation and relevant regulations.
（4） The appointment of the accounting firm needs to be submitted to the shareholders' meeting of the company for deliberation, and will take effect from the date of deliberation and approval of the shareholders' meeting of the company.
It is hereby announced.