Xingmin Zhizhong (Group) Co., Ltd. To the shareholders of Xingmin Zhizhong (Group) Co., Ltd.:
In accordance with the "Audit Guidelines for Internal Control of Enterprises" and the relevant requirements of the Chinese Certified Public Accountants' professional standards, we have audited the effectiveness of the internal financial reporting controls of Xingmin Zhizhong (Group) Co., Ltd. (hereinafter referred to as "Xingmin Zhizhong") as of December 31, 2025.
I. Responsibility for Internal Control
In accordance with the provisions of the "Basic Norms for Enterprise Internal Control," "Application Guidelines for Enterprise Internal Control," and "Evaluation Guidelines for Enterprise Internal Control," the establishment, improvement, and effective implementation of internal control, as well as the evaluation of its effectiveness, are the responsibilities of the Board of Directors of Xingmin Zhizhong.
II. Responsibility of the Certified Public Accountants
Our responsibility is to express an audit opinion on the effectiveness of internal financial reporting controls based on the implementation of audit work, and to disclose any material deficiencies in internal non-financial reporting controls that we have noted.
III. Inherent Limitations of Internal Control
Internal control has inherent limitations, and there is a possibility that it cannot prevent or detect misstatements. Furthermore, due to changes in circumstances that may render internal control inappropriate, or a reduced degree of adherence to 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.