Internal Control Audit Report
RSM|容诚 RSM Certified Public Accountants (Special General Partnership) Head Office: 10th Floor, Building 1, 22 Fuchengmenwai Avenue, Xicheng District, Beijing (100037) TEL:010-6600 1391 FAX:010-6600 1392 E-mail:bj@rsmchina.com.cn https://www.rsm.global/china/
Audit Report No. [blank]
To the shareholders of Shanghai Kehua Bio-engineering Co., Ltd.:
In accordance with the "Audit Guidelines for Internal Control" and the relevant requirements of the Chinese Certified Public Accountants' Auditing Standards, we have audited the effectiveness of the internal financial controls of Shanghai Kehua Bio-engineering Co., Ltd. (hereinafter referred to as "Kehua Bio-engineering") as of December 31, 2025.
I. Responsibility of the Company 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," it is the responsibility of the board of directors of Kehua Bio-engineering to establish, improve, and effectively implement internal controls, and to evaluate their effectiveness.
II. Responsibility of the Certified Public Accountant
Our responsibility is to express an audit opinion on the effectiveness of internal financial controls based on the audit work performed, and to disclose any material weaknesses in non-financial reporting internal controls that we have noted.
III. Inherent Limitations of Internal Control
Internal control has inherent limitations, and there is a possibility that misstatements cannot be prevented or detected. In addition, due to changes in circumstances that may render internal controls inadequate, or a reduced degree of compliance with control policies and procedures, there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control audit.