Internal Control Audit Report
Tianheng Special Letter (2026) 00310
To all shareholders of Jiangsu Xiangteng New Materials Co., Ltd.:
In accordance with the requirements of the "Audit Guidelines for Internal Control of Enterprises" and the relevant requirements of the Chinese Certified Public Accountants' Practice Standards, we have audited the effectiveness of the internal control over financial reporting of Jiangsu Xiangteng New Materials Co., Ltd. (hereinafter referred to as "Xiangteng New Materials") as of December 31, 2025.
I. Responsibility of the Company 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," the responsibility for establishing, improving, and effectively implementing internal control, and evaluating its effectiveness rests with the Board of Directors of Xiangteng New Materials.
II. Responsibility of the Certified Public Accountant
Our responsibility is to express an audit opinion on the effectiveness of internal control over financial reporting based on the implementation of audit work, and to disclose any material weaknesses 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 detected. 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 audit.