ZHONGSHENZHONGHUAN Zhongshenzhonghuan Certified Public Accountants LLP 17-18/F, Yangtze River Industry Building, No. 166 Zhongbei Road, Wuhan, 430077 Tel: 027-86791215 Fax: 027-85424329
Internal Control Audit Report
Zhonghuan Audit Certificate (2026) 1100016
To the shareholders of Hunan Mengjie Home Textile Co., Ltd.:
In accordance with the "Audit Guidelines for Internal Controls" and the relevant requirements of the Chinese Certified Public Accountants' professional standards, we have audited the effectiveness of the internal financial reporting controls of Hunan Mengjie Home Textile Co., Ltd. (hereinafter referred to as "Mengjie Stock Company") as of December 31, 2025.
I. Responsibility of Mengjie Stock Company for Internal Controls
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 the board of directors of Mengjie Stock Company to establish and improve, and effectively implement internal controls, and to evaluate their effectiveness.
II. Responsibility of the Certified Public Accountant
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 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 they may not prevent or detect misstatements. In addition, due to changes in circumstances, internal controls 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 controls based on the results of internal control audits.