Kai Rui De Holdings Co., Ltd.
Internal Control Audit Report
2025 Annual
Zhenzhuan Shen Shen Zi [2026] No. 0039
To all shareholders of Kai Rui De Holdings Co., Ltd.:
In accordance with the "Guidelines for Auditing of Corporate Internal Control" and the requirements of the Chinese Certified Public Accountants Practice Standards, we have audited the effectiveness of the internal control over financial reporting of Kai Rui De Holdings Co., Ltd. (hereinafter referred to as "Kai Rui De Company") as of December 31, 2025.
I. The Company's Responsibility for Internal Control
In accordance with the provisions of the "Basic Norms for Corporate Internal Control," "Application Guidelines for Corporate Internal Control," and "Evaluation Guidelines for Corporate Internal Control," it is the responsibility of Kai Rui De Company's board of directors to establish, improve, and effectively implement internal control, and to evaluate its effectiveness.
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 the 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 it may not prevent or detect misstatements. 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.