Internal Control Audit Report
Zandar Certified Public Accountants LLP Report No. 260000009
To the shareholders of Zhejiang Asia-Pacific Pharmaceutical Co., Ltd.:
In accordance with the "Audit Guidelines for Internal Control of Enterprises" and the requirements of the Chinese Certified Public Accountants Practice Standards, we have audited the effectiveness of the financial reporting internal controls of Zhejiang Asia-Pacific Pharmaceutical Co., Ltd. (hereinafter referred to as "Asia-Pacific Pharmaceutical") as of December 31, 2025.
I. The Company's Responsibility 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," the establishment and improvement of, and effective implementation of, internal control, and the evaluation of its effectiveness are the responsibilities of the company's board of directors.
II. The Responsibility of the Certified Public Accountant
Our responsibility is to express an audit opinion on the effectiveness of financial reporting internal controls based on the implementation of audit work, and to disclose any significant deficiencies 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 errors may not be prevented or discovered. In addition, due to changes in circumstances that may render internal control inappropriate, or a decrease 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.