Special Explanation on the Use of Funds by Controlling Shareholders and Other Related Parties
Tian Zhi Ye Zi [2026] No. 11777
To the Board of Directors of Yantai Zhenghai Biological Technology Co., Ltd.:
We have audited the financial statements of Yantai Zhenghai Biological Technology Co., Ltd. (hereinafter referred to as "Zhenghai Bio Company"), including the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements for 2025, the consolidated and parent company cash flow statements, the consolidated and parent company statements of changes in owners' equity, and the notes to the financial statements. We issued an unqualified audit opinion on March 29, 2026.
In accordance with the requirements of the "Supervision Guidelines No. 8 for Listed Companies - Supervision of Listed Company Fund Transactions and External Guarantees" issued by the China Securities Regulatory Commission, the Ministry of Public Security, the State-owned Assets Supervision and Administration Commission, and the China Banking and Insurance Regulatory Commission, and the relevant documents of the stock exchanges, Zhenghai Bio Company has prepared the attached summary table of non-operating fund occupation and other related party fund transactions for 2025 (hereinafter referred to as the "Summary Table").