Announcement Document Securities Code: 000989 Securities Abbreviation: Jiuzhitang Announcement Number: 2026-017 Jiuzhitang Co., Ltd. 2025 Internal Control Self-Evaluation Report The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions. In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (hereinafter referred to as the "Internal Control Regulatory System"), combined with the Company's internal control system and evaluation methods, and based on daily supervision and special supervision of internal control, we have evaluated the effectiveness of the Company's internal control as of December 31, 2025 (the "Base Date of the Internal Control Evaluation Report"). I. Important Statement In accordance with the requirements of the Internal Control Regulatory System, the establishment, improvement, and effective implementation of internal control, the evaluation of its effectiveness, and the truthful disclosure of the internal control evaluation report are the responsibilities of the Company's Board of Directors. The Audit Committee supervises the establishment and implementation of internal control by the Board of Directors. The management is responsible for organizing and leading the daily operation of the Company's internal control. The Company's Board of Directors, Audit Committee, directors, and senior management guarantee that this report contains no false records, misleading statements, or major omissions, and assume individual and joint legal liability for the truthfulness, accuracy, and completeness of the report. The objective of the Company's internal control is to reasonably ensure that business operations are legal and compliant, assets are secure, financial reports and related information are true and complete, operating efficiency and effectiveness are improved, and development strategies are achieved. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the achievement of these objectives. In addition, due to changes in circumstances, internal control may become inappropriate, or the degree of compliance with control policies and procedures may decrease. There is a certain risk in inferring the future effectiveness of internal control based on the results of the internal control evaluation. II. Conclusion of Internal Control Evaluation Based on the determination of major defects in the Company's financial reporting internal control, as of the Base Date of the Internal Control Evaluation Report, there were no major defects in financial reporting internal control. The Board of Directors believes that the Company has maintained effective financial reporting internal control in all material aspects in accordance with the requirements of the Internal Control Regulatory System and relevant regulations. Based on the determination of major defects in the Company's non-financial reporting internal control, as of the Base Date of the Internal Control Evaluation Report, the Company found no major defects in non-financial reporting internal control. There have been no factors affecting the conclusion of the internal control effectiveness evaluation between the Base Date of the Internal Control Evaluation Report and the date of issuance of the Internal Control Evaluation Report. III. Internal Control Evaluation Work (I) Scope of Internal Control Evaluation The Company determines the main entities, businesses, and matters included in the evaluation scope and high-risk areas based on a risk-oriented approach. The main entities included in this evaluation scope include the Company and its wholly-owned and controlled subsidiaries. The total assets of the entities included in the evaluation scope account for 85.69% of the total assets of the Company's consolidated financial statements, and the operating income of the entities included in the evaluation scope accounts for 89.24% of the operating income of the Company's consolidated financial statements. The main businesses and matters included in the evaluation scope include: organizational structure, development strategy, human resources, social responsibility, fund management, procurement business, production management, asset management, sales management, contract management, research and development, engineering project management, investment management, external guarantees, financial reporting, internal supervision, subsidiary management, related-party transactions, information disclosure, etc. The entities, businesses, and matters included in the evaluation scope cover the main aspects of the Company's business management, and there are no material omissions. (II) Basis for Internal Control Evaluation and Standards for Identifying Internal Control Defects The Company organized and carried out the internal control evaluation work in accordance with the requirements of the "Basic Norms for Enterprise Internal Control," "Supporting Guidelines for Enterprise Internal Control," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Normative Operation of Main Board Listed Companies," and other internal control regulatory systems. Based on the requirements for identifying major defects, important defects, and general defects in the Internal Control Regulatory System, the Company's Board of Directors, considering the Company's scale, industry characteristics, risk appetite, and risk tolerance, has differentiated between financial reporting internal control and non-financial reporting internal control, and has determined the standards for identifying internal control defects applicable to the Company, which remain consistent with previous years. The standards for identifying internal control defects determined by the Company are as follows:
- Standards for Identifying Defects in Financial Reporting Internal Control (1) The quantitative standards determined by the Company for evaluating defects in financial reporting internal control are as follows: Major Defect: The overall impact of the defect reaches 5% or more of total profit. Important Defect: The overall impact of the defect is between 3% (inclusive) and 5% of total profit. General Defect: The overall impact of the defect is less than 3% of total profit. (2) The qualitative standards determined by the Company for evaluating defects in financial reporting internal control are as follows: Major Defect: One or a combination of control defects prevents or fails to detect and correct material misstatements in financial reports in a timely manner. The following situations are identified as major defects: (a) Fraud by Company directors and senior management that causes significant losses and adverse effects to the Company; (b) The external auditor discovers a material misstatement in the current financial report, and the Company fails to discover it first; (c) A major defect that has been discovered and reported to management has not been corrected within a reasonable period; Important Defect: Failure to select and apply accounting policies in accordance with generally accepted accounting principles; one or more defects exist in the control of the year-end financial reporting process that cannot reasonably ensure that the financial statements are true and accurate. General Defect: Other internal control defects that do not constitute major or important defects.
- Standards for Identifying Defects in Non-Financial Reporting Internal Control (1) The quantitative standards determined by the Company for evaluating defects in non-financial reporting internal control are as follows: Major Defect: The overall impact of the defect reaches 5% or more of total profit. Important Defect: The overall impact of the defect is between 3% (inclusive) and 5% of total profit. General Defect: The overall impact of the defect is less than 3% of total profit. (2) The qualitative standards determined by the Company for evaluating defects in non-financial reporting internal control are as follows: The standard for judgment is the likelihood of economic loss caused by the defect if no measures are taken. When the following signs exist, the likelihood of a major defect increases, and therefore the following situations are particularly noted: violation of national laws, regulations, or normative documents, unscientific major decision-making procedures, lack of systematic control or systemic failure in important businesses, severe loss of core management personnel, failure to rectify the results of internal control evaluation, especially major or important defects, and other situations that have a significant impact on the Company. Major Defect: The defect is highly likely to cause economic losses or prevent the achievement of business objectives. Important Defect: The defect is likely to cause economic losses or prevent the achievement of business objectives. General Defect: The defect is unlikely to cause economic losses or prevent the achievement of business objectives. (III) Determination and Rectification of Internal Control Defects
- Determination and Rectification of Defects in Financial Reporting Internal Control Based on the above standards for identifying defects in financial reporting internal control, the Company had no major or important defects in financial reporting internal control during the reporting period.
- Determination and Rectification of Defects in Non-Financial Reporting Internal Control Based on the above standards for identifying defects in non-financial reporting internal control, no major or important defects in non-financial reporting internal control were found during the reporting period. IV. Explanation of Other Major Matters Related to Internal Control During the reporting period, the Company has no other major matters related to internal control that need to be explained. Internal control is a dynamic and continuously improving process. The construction and improvement of the internal control system should be adapted to the Company's operating scale, business scope, competitive situation, and risk level, and should be adjusted in a timely manner as circumstances change. In 2025, the Company further supplemented and revised its internal management system based on changes in business operations and in conjunction with national policies and regulations, promoting the gradual optimization and improvement of the Company's internal control system in dynamic management. With the changes in the Company's scale, business scope, national laws and regulations, and other internal and external environments, the Company will continue to improve and perfect its internal control system, strengthen internal control supervision and inspection, and promote the Company's healthy and sustainable development. Board of Directors of Jiuzhitang Co., Ltd. March 27, 2026 Jiuzhitang Co., Ltd.