Harbin Honor Pharmaceutical Inc.
Securities Code: 002437 Securities Abbreviation: Honor Pharmaceutical Announcement No.: 2026-020
Harbin Honor Pharmaceutical Inc. 2025 Internal Control Evaluation Report
To all shareholders of Harbin Honor Pharmaceutical Inc.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (collectively referred to as the "Enterprise Internal Control Norms System"), and in conjunction with Harbin Honor Pharmaceutical Inc.'s (hereinafter referred to as the "Company" or "this Company") internal control system and evaluation methods, based on daily and special supervision of internal controls, we have evaluated the effectiveness of the Company's internal controls as of December 31, 2025 (the evaluation report base date).
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Norms System, establishing, improving, and effectively implementing internal controls, evaluating their effectiveness, and truthfully disclosing the internal control evaluation report are the responsibilities of the Company's Board of Directors. The Audit Committee is responsible for reviewing the Company's financial information and its disclosure, and for supervising and evaluating internal and external audit work and internal controls. The management is responsible for organizing and leading the daily operation of the Company's internal controls. The Company's Board of Directors, its directors, and senior management guarantee that the content of this report contains no false records, misleading statements, or significant omissions, and they bear individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report's content.
The objective of the Company's internal control is to reasonably ensure that business management is legal and compliant, assets are safe, financial reports and related information are true and complete, and to improve operational efficiency and effectiveness, thereby promoting the achievement of development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving these objectives. Furthermore, changes in circumstances may render internal controls inappropriate, or reduce the degree of adherence to control policies and procedures, and there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control evaluation.
II. Conclusion of Internal Control Evaluation
Based on the identification of material weaknesses in the Company's financial reporting internal controls, as of the evaluation report base date, there are no material weaknesses in financial reporting internal controls. The Board of Directors believes that the Company has maintained effective financial reporting internal controls in all material aspects in accordance with the requirements of the Enterprise Internal Control Norms System and relevant regulations.
Based on the identification of material weaknesses in the Company's non-financial reporting internal controls, as of the evaluation report base date, the Company has not found any material weaknesses in non-financial reporting internal controls.
No factors have occurred between the evaluation report base date and the date of issuance of this internal control evaluation report that affect the effectiveness of the internal control evaluation conclusion.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation
The Company determines the main entities, businesses, and matters included in the evaluation scope, as well as high-risk areas, based on a risk-oriented approach. The main entities included in the evaluation scope are:
Harbin Honor Pharmaceutical Inc., which is this Company, with its main business being pharmaceutical production and sales.
Harbin Honor Jingwei Pharmaceutical Development Co., Ltd., a wholly-owned subsidiary of the Company, whose main business is pharmaceutical promotion.
Honor Jia Yun Medical Investment Co., Ltd., a wholly-owned subsidiary of the Company, whose main business is investment.
Harbin Honor Anbo Pharmaceutical Co., Ltd., a wholly-owned subsidiary of the Company, whose main business is pharmaceutical product sales.