According to the "Guidelines for Internal Control Audit" and the relevant requirements of the Chinese Registered Accountant Association, we have conducted an internal control audit of Shandong Xinhua Pharmaceutical Co., Ltd. for the year ending December 31, 2025.
1. Responsibilities for Internal Control
According to the "Basic Standards for Enterprise Internal Control" and the "Guidelines for Internal Control Audit," the company is responsible for establishing and maintaining effective internal controls.
2. Responsibilities of the Registered Accountant
Our responsibility is to perform the audit based on the foundation of the audit work and to express an opinion on the effectiveness of the internal control in the financial report.
3. Limitations of Internal Control
Internal control has inherent limitations, which may not prevent or detect all misstatements. Additionally, due to changes in circumstances, the effectiveness of internal control may vary.
4. Recommendations on Internal Control Audit
We believe that Shandong Xinhua Pharmaceutical Co., Ltd. has maintained effective internal controls in accordance with the "Basic Standards for Enterprise Internal Control" as of December 31, 2025.
Prepared by: [blank]
China Registered Accountant: Li Chunhu
China Registered Accountant: Kong Xianghu
Beijing, China
March 27, 2026