Internal Control Audit Report Audit Report No. [blank] To all shareholders of Hunan Boyun New Materials Co., Ltd.: In accordance with the "Guidelines for Internal Control Audits" and the relevant requirements of the Chinese Certified Public Accountants' Professional Standards, we have audited the effectiveness of the internal control over financial reporting of Hunan Boyun New Materials Co., Ltd. (hereinafter referred to as Boyun New Materials) as of December 31, 2025.
I. The Company's Responsibility for Internal Control In accordance with the "Basic Norms for Enterprise Internal Control," "Guidelines for Application of Enterprise Internal Control," and "Guidelines for Evaluation of Enterprise Internal Control," the responsibility for establishing, improving, and effectively implementing internal control, and evaluating its effectiveness, rests with the Board of Directors of Boyun New Materials.
II. The Certified Public Accountant's Responsibility 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 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. Furthermore, due to changes in circumstances, internal control may become inappropriate, or the degree of compliance with control policies and procedures may decrease. Therefore, there is a certain risk in inferring the future effectiveness of internal control based on the results of the internal control audit.