Hubei Hendi Pharmaceutical Co., Ltd.
2025 Annual Internal Control Self-Evaluation Report
To all shareholders of Hubei Hendi Pharmaceutical Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (hereinafter referred to as the enterprise internal control normative system), and based on the company's internal control system and evaluation methods, we have evaluated the effectiveness of the company's internal controls as of December 31, 2025 (the benchmark date for the internal control evaluation report).
Important Statement
According to the provisions of the enterprise internal control normative system, it is the responsibility of the company's board of directors to establish, improve, and effectively implement internal controls, evaluate their effectiveness, and truthfully disclose the internal control evaluation report. The audit committee supervises the establishment and implementation of internal controls by the board of directors. The management is responsible for organizing and leading the daily operation of internal controls. The company's board of directors, audit committee, and directors and senior management ensure that the contents of this report do not contain any false records, misleading statements, or significant omissions, and bear individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report's contents. The objective of the company's internal controls is to reasonably ensure that business management is legal and compliant, assets are secure, financial reporting and related information are true and complete, operational efficiency and effectiveness are improved, and the development strategy is promoted. Due to the inherent limitations of internal controls, they can only provide reasonable assurance for achieving the above objectives. Furthermore, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in internal controls over financial reporting, as of the benchmark date of the internal control evaluation report, there are no significant deficiencies in internal controls over financial reporting. The board of directors believes that the company has maintained effective internal controls over financial reporting in all material respects in accordance with the requirements of the enterprise internal control normative system and related regulations. Based on the identification of significant deficiencies in non-financial reporting internal controls, as of the benchmark date of the internal control evaluation report, the company has not identified any significant deficiencies in non-financial reporting internal controls.