Lixin Certified Public Accountants (Special General Partnership) BDO CHINA SHU LUN PAN CERTIFIED PUBLIC ACCOUNTANTS LLP
Internal Control Audit Report
Audit Report No. [2026] ZE10123
To all shareholders of Qianjiang Yong'an Pharmaceutical Co., Ltd.:
In accordance with the "Guide to Auditing of Internal Controls" and the requirements of the China Certified Public Accountants Practice Standards, we have audited the effectiveness of the internal control over financial reporting of Qianjiang Yong'an Pharmaceutical Co., Ltd. (hereinafter referred to as Yong'an Pharmaceutical) as of December 31, 2025.
I. Responsibility of the Enterprise 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 Yong'an Pharmaceutical'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 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 misstatements cannot be prevented or discovered. In addition, 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.