Internal Control Audit Report
Tianjian Audit [2026] No. 8-159
To the shareholders of Sichuan Kelun Pharmaceutical Co., Ltd.:
In accordance with the "Guidelines for Auditing of Internal Control of Enterprises" and the requirements of the Chinese Certified Public Accountants' Auditing Standards, we have audited the effectiveness of the internal control of Sichuan Kelun Pharmaceutical Co., Ltd. (hereinafter referred to as Kelun Pharmaceutical 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 "Guidelines for Evaluating Enterprise Internal Control," it is the responsibility of the Board of Directors of Kelun Pharmaceutical Company to establish, improve, and effectively implement internal control, and to evaluate its effectiveness.
II. The Responsibility of the Certified Public Accountant
Our responsibility is to express an audit opinion on the effectiveness of the financial reporting internal control based on our audit work, and to disclose any significant deficiencies in non-financial reporting internal control that we have noted.
III. Inherent Limitations of Internal Control
Internal control has inherent limitations, and there is a possibility that misstatements may not be prevented or detected. In addition, due to changes in circumstances, internal control may become inappropriate, or the degree of compliance with control policies and procedures may decrease. There is a certain risk in inferring the future effectiveness of internal control based on the results of the internal control audit.