Explanation by the Audit Committee of the Board of Directors on the Reasonableness of the Company's Impairment Provision

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The Audit Committee of Sailong Pharmaceutical Group Co., Ltd. reviewed the company's impairment provision for the fiscal year 2025. They confirmed that the provision complies with relevant accounting standards and company policies, based on prudent judgment. The committee concluded that the impairment provision allows for a more accurate reflection of the company's financial status and asset value.

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