Yantai Jereh Oilfield Services Group Co., Ltd. Internal Control Audit Report Zhongxi Special Audit No. 2026T00113
To all shareholders of Yantai Jereh Oilfield Services Group Co., Ltd.:
In accordance with the "Audit Guidelines for Internal Control of Enterprises" and the requirements of the Chinese Certified Public Accountants' professional standards, we have audited the effectiveness of the financial reporting internal controls of Yantai Jereh Oilfield Services Group Co., Ltd. (hereinafter referred to as Jereh Co., Ltd.) as of December 31, 2025.
I. The Company's Responsibility for Internal Control
In accordance with the provisions of the "Basic Norms for Enterprise Internal Control," "Application Guidelines for Enterprise Internal Control," and "Guidelines for Enterprise Internal Control Evaluation," the establishment, improvement, and effective implementation of internal control, and the evaluation of its effectiveness are the responsibilities of the Board of Directors of Jereh Co., Ltd.
II. The Certified Public Accountant's Responsibility
Our responsibility is to express an audit opinion on the effectiveness of financial reporting internal 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 may not be prevented or detected. In addition, due to changes in circumstances that may render internal control inappropriate, or a reduction in the degree of compliance with control policies and procedures, there is a certain risk in inferring the future effectiveness of internal control based on the results of the internal control audit.