Internal Control Audit Report
Tianjian Audit [2026] No. 3-353
To all shareholders of Hubei Ping An Electric Technology Co., Ltd.:
In accordance with the "Guidelines for Auditing of Internal Control" and the requirements of the Chinese Certified Public Accountants' Auditing Standards, we have audited the effectiveness of the internal control over financial reporting of Hubei Ping An Electric Technology Co., Ltd. (hereinafter referred to as "Ping An Electric Company") as of December 31, 2025.
I. The Company's Responsibility for Internal Control
In accordance with the provisions of the "Basic Norms for Enterprise Internal Control," "Application Guidelines for Enterprise Internal Control," and "Evaluation Guidelines for Enterprise Internal Control," it is the responsibility of the board of directors of Ping An Electric Company to establish and improve and effectively implement internal control, and to evaluate its effectiveness.
II. The Responsibility of the Certified Public Accountant
Our responsibility is to express an audit opinion on the effectiveness of the internal control over financial reporting based on the implementation of audit work, and to disclose any significant deficiencies in internal control 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 cannot be prevented or discovered. In addition, due to changes in circumstances that may lead to internal control becoming inappropriate, or a reduction in the degree of compliance with control policies and procedures, there is a certain risk in inferring the future effectiveness of internal control based on the results of the internal control audit.