| I. Operation of Internal Audit and Audit Committee | | |
| 1. Is the head of the internal audit department full-time, nominated by the audit committee, and appointed/dismissed by the board of directors? | Yes | |
| 2. Has the company established an internal audit department independent of the finance department, and is there dedicated internal audit staff? | Yes | |
| 3. Does the internal audit department report to the audit committee at least quarterly? | Yes | |
| 4. Does the internal audit department inspect the following items at least quarterly: | | |
| (1) Deposit and use of raised funds | Not Applicable | The company has no raised funds. |
| (2) External guarantees | Not Applicable | The company had no external guarantee activities during the reporting period. |
| (3) Related-party transactions | Not Applicable | The company had no related-party transactions during the reporting period. |
| (4) Securities investment | Not Applicable | The company had no securities investment activities. |
| (5) Venture capital investment | Not Applicable | The company had no venture capital investment activities. |
| (6) Providing financial assistance externally | Not Applicable | The company had no external financial assistance activities. |
| (7) Purchase and sale of assets | Yes | During the reporting period, the company sold its subsidiary KaiRui (Hubei) Biotechnology Co., Ltd. |
| (8) External investment | Not Applicable | The company had no external investment activities during the reporting period. |
| (9) Large amount of capital transactions by the company | Yes | Large capital transactions are mainly between the company and its parent/subsidiaries. |
| (10) Capital transactions between the company and directors, supervisors, senior management, controlling shareholders, actual controllers, and their related parties | Yes | During the reporting period, there were no capital transactions with related parties. |
| 5. Does the audit committee hold at least one meeting per quarter to review the work plan and report submitted by the internal audit department? | Yes | |
| 6. Does the audit committee report to the board of directors at least quarterly on the progress, quality, and major issues found in the internal audit work? | Yes | |
| 7. Does the internal audit department submit the annual internal audit work report and the work plan for the next year to the audit committee on time? | Yes | |
| II. Internal Control of Information Disclosure | | |
| 1. Has the company formulated an information disclosure management system and a major information confidentiality system? | Yes | |
| 2. Has the company designated or authorized the board secretary or securities affairs representative to monitor investor inquiries on the SZSE's interactive platform and respond promptly and completely? | Yes | |
| 3. Does the company require the specific counterparty to sign a letter of commitment before communicating directly with a specific counterparty? | Not Applicable | |
| 4. Within two trading days after each investor relations activity, does the company compile the "Investor Relations Activity Record" and publish it along with presentation materials, documents, etc. (if any) on the SZSE's interactive platform and the company's website (if any)? | Not Applicable | |
| III. Internal Control of Insider Trading | | |
| 1. Has the company established a registration management system for insiders, stipulating the management of insider information confidentiality and the registration of insiders before the legal public disclosure of insider information? | Yes | |
| 2. Before the public disclosure of insider information according to law, does the company fill out the "List of Insiders of Listed Companies" and form a memorandum of major event progress when planning major events, and do the relevant personnel sign the memorandum? | Yes | |
| 3. Within 5 trading days after the disclosure of the annual report, semi-annual report, and relevant major event announcements, does the company conduct a self-inspection of the trading of company securities and their derivatives by insiders? If insider trading, leakage of insider information, or advising others to trade based on insider information is found, does the company verify, investigate responsibility, and report the relevant situation and handling results to the SZSE and the local CSRC within 2 working days? | Yes | |
| 4. Before directors, supervisors, senior management, and their spouses trade the company's stock and its derivatives, do they submit their trading plan in writing to the board secretary? | Not Applicable | |
| 5. Does the company strictly follow the approval limits and review procedures for related-party transactions and fulfill information disclosure obligations in a timely manner? | Yes | |
| IV. Internal Control of Raised Funds | | |
| 1. Does the company and its subsidiaries implementing raised fund projects store raised funds in special accounts and sign "Tripartite Custody Agreements" for raised funds in a timely manner? | Not Applicable | |
| 2. Does the internal audit department audit the use and storage of raised funds at least quarterly and express opinions on the authenticity and compliance of the use of raised funds? | Not Applicable | |
| 3. Except for financial enterprises, has the company not invested raised funds in transactional financial assets and available-for-sale financial assets, lent them to others, entrusted wealth management, or other financial investments? Has the company not used raised funds for venture capital, or invested directly or indirectly in companies whose main business is trading securities, or used them for pledges, entrusted loans, or other investments that change the use of raised funds? | Not Applicable | |
| 4. Within 12 months after the company makes a venture capital investment, has it not used idle raised funds to temporarily supplement working capital, has it not changed the use of raised funds to permanent working capital, and has it not permanently used excess raised funds to supplement working capital or repay bank loans? | Not Applicable | |
| V. Internal Control of Related-Party Transactions | | |
| 1. Within 10 trading days after the company's initial public offering, did the company report related-party information through the "Information Filing: Related Party Data Filing" section of the SZSE business zone? If related parties or their information changes, does the company update it within 2 trading days? Is the reported related-party information true, accurate, and complete? | Yes | |
| 2. Do the company's independent directors and supervisors review the capital transactions between the company and related parties at least quarterly? | Yes | |
| 3. Has the company clearly defined the approval limits for related-party transactions by the general meeting of shareholders and the board of directors, formulated corresponding review procedures, and implemented them? | Yes | |
| 4. Are the company's directors, supervisors, senior management, controlling shareholders, actual controllers, and their related parties not directly or indirectly occupying the company's funds in any disguised form? | Yes | |
| VI. Internal Control of External Guarantees | | |
| 1. Has the company's articles of association clearly defined the approval limits for external guarantees by the general meeting of shareholders and the board of directors, and established a system for accountability for violations of approval limits and review procedures? | Yes | |
| 2. Does the company strictly follow the approval limits and review procedures for external guarantees and fulfill information disclosure obligations in a timely manner? | Not Applicable | The company had no external guarantee activities during the reporting period. |
| VII. Internal Control of Major Investments | | |
| 1. Has the company's articles of association clearly defined the approval limits and review procedures for major investments by the general meeting of shareholders and the board of directors? Do the approval limits and review procedures comply with laws, regulations, and SZSE business rules? | Yes | |
| 2. Does the company strictly follow the approval limits and review procedures for major investments and fulfill information disclosure obligations in a timely manner? | Not Applicable | The company had no major investments during the reporting period. |
| 3. During the following periods, has the company not made venture capital investments: (1) during the period of temporarily supplementing working capital with idle raised funds; (2) within twelve months after the use of raised funds is changed to permanent working capital; (3) within twelve months after excess raised funds are permanently used to supplement working capital or repay bank loans. | Not Applicable | |
| VIII. Other Important Matters | | |
| 1. Has the company's controlling shareholder and actual controller signed the "Declaration and Commitment Letter of Controlling Shareholder and Actual Controller" and filed it with the SZSE and the company's board of directors for the record? If the controlling shareholder or actual controller changes, does the new controlling shareholder or actual controller complete the signing and filing of the "Declaration and Commitment Letter of Controlling Shareholder and Actual Controller" within one month of the change? | Yes | |
| 2. Have the company's directors, supervisors, and senior management signed and updated the "Declaration and Commitment Letter of Directors, Supervisors, and Senior Management" and filed it with the SZSE and the company's board of directors for the record in a timely manner? | Yes | |
| 3. In addition to attending board meetings, do independent directors conduct on-site inspections of the company's production and operation status, the construction and implementation of management and internal control systems, and the implementation of board resolutions for at least ten days each year? | Yes | |
| Independent Director Name | Number of Days | |
| Dong Yunyan | 10 | |
| Fan Xiaoliang | 10 | |
| Wang Shixi | 10 | |
| KaiRuiDe Holdings Co., Ltd. Board of Directors | | |
| April 25, 2025 | | |