Internal Control Audit Report
Audit Report Letter No. [2026] ZA10554
To All Shareholders of Zhejiang Jiaxin Silk Co., Ltd.:
In accordance with the "Audit Guidelines for Internal Controls of Enterprises" and the relevant requirements of the Chinese Certified Public Accountants' professional standards, we have audited the effectiveness of the internal financial reporting controls of Zhejiang Jiaxin Silk Co., Ltd. (hereinafter referred to as Jiaxin Silk) 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 responsibility for establishing, improving, and effectively implementing internal control, and evaluating its effectiveness, rests with the Board of Directors of Jiaxin Silk.
II. The Responsibility of the Certified Public Accountant
Our responsibility is to express an audit opinion on the effectiveness of internal financial reporting controls based on our audit work and to disclose any material weaknesses in internal non-financial reporting 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. Furthermore, due to changes in circumstances, internal control may become inappropriate, or the degree of compliance with control policies and procedures may decrease. Therefore, inferring the future effectiveness of internal control based on the results of an internal control audit carries a certain risk.