Internal Control Audit Report
Certified Public Accountant Report No. [blank] [blank]
To all shareholders of Shaoxing Xingxin New Material Co., Ltd.:
In accordance with the "Guidelines for Auditing Internal Controls" and the relevant requirements of the Chinese Certified Public Accountants Practice Standards, we have audited the effectiveness of the internal controls over financial reporting of Shaoxing Xingxin New Material Co., Ltd. (hereinafter referred to as "Xingxin New Material") as of December 31, 2025.
I. The Company's Responsibility for Internal Control
In accordance with the "Basic Norms for Enterprise Internal Control," "Application Guidelines for Enterprise Internal Control," and "Evaluation Guidelines for Enterprise Internal Control," the establishment and improvement of effective internal controls, and their evaluation, are the responsibility of the board of directors of Xingxin New Material.
II. The Responsibility of Certified Public Accountants
Our responsibility is to express an audit opinion on the effectiveness of internal controls over financial reporting based on the implementation of the audit work, and to disclose any significant deficiencies in internal controls over non-financial reporting that we have noted.
III. Inherent Limitations of Internal Control
Internal control has inherent limitations, and there is a possibility that errors may not be prevented or discovered. Furthermore, due to changes in circumstances, internal controls may become inappropriate, or the degree of compliance with control policies and procedures may decrease. Based on the results of the internal control audit, there is a certain risk in inferring the future effectiveness of internal controls.