Internal Control Audit Report Reanda Audit Certificate [2026] No. 0318
To all shareholders of Zhejiang Youfu High-Tech Fiber Co., Ltd.:
In accordance with the "Audit Guidelines for Enterprise Internal Control" and the requirements of the Chinese Certified Public Accountants' professional standards, we have audited the effectiveness of the internal controls of Zhejiang Youfu High-Tech Fiber Co., Ltd. (hereinafter referred to as "Youfu Stock Company") for the year ended December 31, 2025.
I. Responsibility of Youfu Stock Company 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 the board of directors of Youfu Stock Company to establish, improve, and effectively implement internal controls and evaluate their effectiveness.
II. Responsibility of the Certified Public Accountant
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 Control
Internal control has inherent limitations, and there is a possibility that misstatements cannot be prevented or detected. In addition, due to changes in circumstances, internal controls may become inappropriate, or the degree of compliance with control policies and procedures may decrease. Based on the results of the internal control audit, there is a certain risk in inferring the effectiveness of future internal controls.