Huaxing Certified Public Accountants LLP
Address: 6-9/F Block B, 152 Hudong Road, Fuzhou, Fujian, China Tel: 0591-87852574 Fax: 0591-87840354 Http://www.fjhxcpa.com Postcode: 350003
Internal Control Audit Report
Huaxing Audit Letter No. [2026]25016490017
To all shareholders of Guangdong Chaohongji Industrial Co., Ltd.:
In accordance with the "Guidelines for Auditing of Internal Control of Enterprises" and the relevant requirements of the Chinese Certified Public Accountants' professional standards, we have audited the effectiveness of the internal control of financial reporting of Guangdong Chaohongji Industrial Co., Ltd. (hereinafter referred to as "Chaohongji") 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 Chaohongji to establish and improve an effective internal control system and evaluate its effectiveness.
II. Responsibility of the Certified Public Accountants
Our responsibility is to express an audit opinion on the effectiveness of the internal control of financial reporting based on the audit work performed, and to disclose any material weaknesses in internal control of 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 may not 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. Based on the results of the internal control audit, there is a certain risk in inferring the effectiveness of future internal control.