Shandong Zhongrui Industrial Development Co., Ltd.
Internal Control Audit Report
Hexin Audit Letter (2026) No. 000322
To all shareholders of Shandong Zhongrui Industrial Development Co., Ltd.:
In accordance with the "Guidelines for Auditing of Internal Control of Enterprises" and the requirements of the Chinese Certified Public Accountants' Practice Standards, we audited the effectiveness of the internal control of financial reporting of Shandong Zhongrui Industrial Development Co., Ltd. (hereinafter referred to as Zhongrui Company) 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 "Evaluation Guidelines for Enterprise Internal Control," it is the responsibility of Zhongrui Company's Board of Directors to establish, improve, and effectively implement internal control, and to evaluate its effectiveness.
II. The Certified Public Accountant's Responsibility
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 material weaknesses 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 it may not prevent and detect misstatements. 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 effectiveness of future internal control based on the results of the internal control audit.