Stock code: 688578 Stock abbreviation: Allist Announcement No.: 2024-034

Shanghai Allist Pharmaceutical Technology Co., Ltd

Announcement on the Change of Accounting Firm

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or material omissions in the content of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content in accordance with the law.

Important Content Notes:

Name of accounting firm to be hired: Ernst & Young Huaming Certified Public Accountants (Special General Partnership)

(hereinafter referred to as "Ernst & Young Huaming")

Name of the original accounting firm: PricewaterhouseCoopers Zhongtian Certified Public Accountants (special general combination

(hereinafter referred to as "PwC Zhongtian")

Brief reasons for the change of accounting firm and objections from the former accountants: According to the State-Owned Enterprises

In view of the relevant provisions of the Administrative Measures for the Selection and Appointment of Accounting Firms by Listed Companies, taking into account the company's actual development strategy and demand for audit services, Shanghai Allist Pharmaceutical Technology Co., Ltd. (hereinafter referred to as the "Company") intends to change the accounting firm and appoint Ernst & Young Huaming as the company's 2024 audit institution, responsible for the company's 2024 financial audit and internal control audit. The company has fully communicated with the former accounting firm PricewaterhouseCoopers Zhongtian on the proposed change of accounting firm, and it has no objection to the change.

1. The basic information of the accounting firm to be employed

(1) Institutional information

1. Basic information

Ernst & Young Huaming was established in September 1992 and completed the localization transformation in August 2012

The limited liability law firm was transformed into a special general partnership firm. Ernst & Young Huaming is headquartered in Beijing.

The 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 2023, it has 245 partners, and the chief partner is Mr. Mao Anning. Ernst & Young Hua Ming 1

As of the end of 2023, it has nearly 1,800 practicing certified public accountants

There are more than 1,500 certified public accountants with experience in securities-related business services, and nearly 500 certified public accountants have signed audit reports on securities service business.

Ernst & Young Huaming's total audited business revenue for 2023 was RMB5.955 billion, of which audited

Business income was RMB5,585 million (including securities business income of RMB2,438 million). 2023 A

A total of 137 clients audited the annual reports of listed companies, with a total fee of RMB 905 million. The main industries of these listed companies involve manufacturing, finance, wholesale and retail, mining, information transmission, software and information technology services, leasing and business services, etc.; The company has a total of 66 audit clients of listed companies in the same industry.

2. Investor protection ability

Ernst & Young Huaming has good investor protection capabilities, and has made provision for occupational risk funds and purchased occupational insurance in accordance with the requirements of relevant laws and regulations, and the insurance covers the Beijing head office and all branches. The sum of the accrued occupational risk fund and the cumulative compensation limit of the purchased occupational insurance exceeds RMB 200 million. In the past three years, EY Huaming has not had any civil liability due to civil litigation related to its professional conduct.

3. Integrity record

In the past three years, EY Huaming and its practitioners have not been subject to any criminal penalties or disciplinary actions by self-regulatory organizations such as industry associations for their professional conduct. He has received an administrative penalty from the competent department of the industry for two employees. He has received two warning letters from the securities regulatory authority, involving five practitioners. The aforesaid decision to issue a warning letter is a supervision and management measure, not an administrative penalty. I have received a self-regulatory measure from the stock exchange to issue written warnings to two practitioners, and it does not involve penalties. The foregoing does not affect EY Huaming's continued undertaking or execution of securities services business and other businesses.

(2) Project information

1. Basic information

Proposed Project Partner and Signatory CPA: Ms. Wu Huijun, became a certified public accountant in 2014, began to engage in the audit of listed companies in 2005, began to practice at Ernst & Young Huaming in 2007, and intends to provide audit services for the Company in 2024. In the past three years, we have signed/reviewed the audit of the annual reports of 2 listed companies, mainly serving the biomedical and retail consumer goods industries.

Proposed Signing CPA: Ms. Wang Qingxiu, became a certified public accountant in 2018, began to engage in the audit of listed companies in 2015, began to practice at Ernst & Young Huaming in 2021, and intends to provide audit services to the Company in 2024. In the past three years, we have signed/reviewed the audit of the annual reports of 1 listed company, mainly serving the biomedical industry.

Proposed project quality control reviewer: Mr. Hu Yuanhui, became a certified public accountant in 2005, began to engage in the audit of listed companies in 2001, began to practice at Ernst & Young Huaming in 2020, and intends to provide audit services to the Company in 2024. In the past three years, we have signed/reviewed the audit of the annual reports of 1 listed company, mainly serving the biomedical industry.

2. Integrity record

In the past three years, the above-mentioned proposed project partners, signatory certified public accountants and project quality control reviewers have not been subject to criminal penalties or administrative penalties for their professional conduct, nor have they been subject to the supervision and management measures of the securities regulatory authority or the self-regulatory measures or disciplinary actions of self-regulatory organizations such as stock exchanges and industry associations.

3. Independence

Ernst & Young Huaming and the above-mentioned proposed project partners, signatory CPAs, and project quality control reviewers did not violate the independence requirements of the Code of Professional Ethics for Chinese Certified Public Accountants.

4. Audit fees

EY Huaming's audit service fees are determined based on factors such as the complexity of the company's business, the expected workload, and the number of hours invested by employees at all levels. The audit fee to be paid to Ernst & Young Huaming for the audit of the 2024 financial statements and internal control audit is RMB2.18 million (of which the internal control audit fee is RMB

500,000 yuan), a decrease of 340,000 yuan compared with the audit fee in 2023.

2. A description of the proposed change of accounting firm

(1) The situation of the former accounting firm and the audit opinion of the previous year

PricewaterhouseCoopers Zhongtian is the company's accounting firm for 2023 and issued a bid for the company's 2023 annual report

Quasi-unqualified audit opinion, after the implementation of the company's 2023 annual audit work, PwC Zhongtian has provided audit services for the company for 7 consecutive years. PwC Zhongtian has fulfilled its due diligence as an auditor from

From a professional point of view, it has safeguarded the legitimate rights and interests of the company and its shareholders. The Company has not been dismissed after entrusting a former accounting firm to carry out part of the audit work.

(2) The reason for the proposed change of the accounting firm

In accordance with the relevant provisions of the Administrative Measures for the Selection and Employment of Accounting Firms by State-owned Enterprises and Listed Companies, the Company intends to change its accounting firm in consideration of the Company's actual development strategy and demand for audit services. There is no difference between the company and PricewaterhouseCoopers Zhongtian in terms of work arrangements, fees, opinions, etc.

(3) The communication between the listed company and the former accounting firm

The company has fully communicated with PricewaterhouseCoopers Zhongtian Certified Public Accountants on the proposed change of accounting firm, and it has no objection to the change. The former accounting firm will actively communicate and cooperate with the CPA in accordance with the Chinese Certified Public Accountants Auditing Standard No. 1153 - Communication between the former CPA and the subsequent CPA and other relevant requirements.

3. The procedures to be performed by the accounting firm are to be changed

(1) The performance of duties by the Audit Committee

The Audit Committee of the Board of Directors of the Company has reviewed the professional competence, investor protection ability, independence, and integrity of Ernst & Young Huaming, and believes that it adheres to independent auditing standards in the course of its practice, objectively and fairly reflects the company's financial position and operating results, earnestly performs its duties as an accounting firm, and has professional competence and investor protection capabilities, and the company's reasons for changing the annual audit institution are sufficient and appropriate, and it agrees to propose to the board of directors to re-appoint Ernst & Young Huaming as the company in 2024 Financial and internal control auditor of the year.

(2) The deliberation and voting of the board of directors

The twelfth meeting of the second board of directors of the company was approved by 10 votes, 0 votes against and 0 abstentions

After the "Proposal on Changing the Accounting Firm", it was agreed to re-appoint Ernst & Young Huaming as the company's financial and internal control auditor for 2024.

(3) Effective date

The change of the 2024 financial and internal control auditor needs to be submitted to the general meeting of shareholders of the company for deliberation, and will take effect from the date of deliberation and approval of the general meeting of shareholders of the company.

The announcement is hereby made.

Board of Directors of Shanghai Allist Pharmaceutical Technology Co., Ltd

November 9, 2024