Internal Control Audit Report
[Date: April 24, 2026]
To the Shareholders of Xinya Process (Zhejiang) Co., Ltd.:
In accordance with the "Audit Guidelines for Internal Controls 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 Xinya Process (Zhejiang) Co., Ltd. (hereinafter referred to as Xinya Process Company) as of December 31, 2025.
I. Responsibility of the Company for Internal Controls
In accordance with the provisions of the "Basic Norms for Enterprise Internal Controls," "Application Guidelines for Enterprise Internal Controls," and "Evaluation Guidelines for Enterprise Internal Controls," it is the responsibility of the Board of Directors of Xinya Process Company to establish, improve, and effectively implement internal controls, and to evaluate their effectiveness.
II. Responsibility of the Certified Public Accountants
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 Controls
Internal controls have inherent limitations, and there is a possibility that misstatements cannot be prevented or detected. In addition, due to changes in circumstances that may render internal controls inappropriate, or a reduced degree of adherence to control policies and procedures, there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control audit.