Internal Control Audit Report
Zhonghui CPA [2026] 3682
To all shareholders of Hangyang Group Co., Ltd.:
In accordance with the "Internal Control Audit Guidelines" and the requirements of Chinese Certified Public Accountants' professional standards, we have audited the effectiveness of the financial reporting internal controls of Hangyang Group Co., Ltd. (hereinafter referred to as Hangyang Stock 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 "Evaluation Guidelines for Enterprise Internal Control," the establishment and improvement of an effective internal control system and the evaluation of its effectiveness are the responsibilities of the Board of Directors of Hangyang Stock Company.
II. The 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 may not 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. Therefore, there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control audit.
IV. Audit Opinion on Financial Reporting Internal Control
We believe that Hangyang Stock Company maintained effective financial reporting internal controls in all material respects as of December 31, 2025, in accordance with the "Basic Norms for Enterprise Internal Control" and relevant regulations.
China Hangzhou City, Qianjiang New City, No. 8 Xinye Road, UDC Times Building, Floors 5-8, 12, and 23 Tel.0571-88879999 Fax.0571-88879000 www.zhcpa.cn
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