Zuoli Pharmaceutical: Evaluation report on the accounting firm’s performance of duties in 2025
Zhejiang Zuoli Pharmaceutical Co., Ltd.
Evaluation report on the accounting firm’s performance of duties in 2025
Zhejiang Zuoli Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") hired Zhonghui Accounting Firm (Special General Partnership) (hereinafter referred to as "Zhonghui") as the audit agency for 2025. In accordance with the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Code of Governance for Listed Companies", "Administrative Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies" and "Self-Regulatory Supervision Guidelines for Listed Companies of the Shenzhen Stock Exchange" No. 2 - Standardized Operation of GEM Listed Companies" and the "Articles of Association" and other regulations and requirements, the company evaluated Zhonghui's performance of duties during the 2025 annual review process. The specific situation is as follows:
1. Basic situation of accounting firms in 2025 annual audit
(1) Basic information
Zhonghui Accounting Firm (Special General Partnership) was established on December 19, 2013. Its registered address is Room 601, Building A, Hualian Times Building, No. 8 Xinye Road, Shangcheng District, Hangzhou. The chief partner is Mr. Gao Feng. It was converted into a special general partnership in December 2013. Its management headquarters was established in Hangzhou. It is one of the accounting firms originally qualified to audit securities and futures businesses and has been engaged in securities services for a long time. As of December 31, 2025, there were 117 partners, 688 certified public accountants, and 312 certified public accountants who had signed securities service business audit reports.
(2) Business scale
The total audited income in the most recent year (2025) was RMB 1,004.57 million, of which the audit business income was RMB 872.29 million. The number of audit clients of listed companies last year (2024 annual report) was 205, and the total audit fees were 169.63 million yuan. The main industries of these listed companies include: manufacturing - special equipment manufacturing, information transmission, software and information technology services - software and information technology services, manufacturing - electrical machinery and equipment manufacturing, manufacturing - computers, communications and other electronic equipment manufacturing, manufacturing - pharmaceutical manufacturing.
(3) Investor protection capabilities
Zhonghui has not set aside occupational risk funds, and the cumulative compensation limit for the purchased occupational insurance is 300 million yuan. The purchase of occupational insurance complies with relevant regulations. In the past three years, Zhonghui has not been required to bear civil liability for compensation in any civil lawsuits related to its professional practices that have been concluded.
(4) Integrity record and independence
In the past three years, Zhonghui has been subject to 0 criminal penalties, 1 administrative penalty, 7 supervisory and management measures, 8 self-discipline supervision measures and 1 disciplinary action due to its professional conduct. 46 employees received 0 criminal penalties, 1 administrative penalty, 7 supervisory and management measures, 12 self-regulatory measures and 2 disciplinary sanctions due to their professional behavior in the past three years.
There are no circumstances that may affect the independence of Zhonghui, its project partners, signing certified public accountants, and project quality control reviewers.
2. Duty performance of the accounting firm in the 2025 annual audit
In accordance with the "Audit Engagement Letter", in compliance with the "Audit Standards for Chinese Certified Public Accountants" and other professional norms, and in conjunction with the company's 2025 annual report work arrangements, Zhonghui audited the company's 2025 annual financial report and the effectiveness of the internal control of the financial report on December 31, 2025. At the same time, it verified and issued a special report on the actual storage, management and use of the company's raised funds, the occupation of non-operating funds and other related fund transactions.
After auditing, Zhonghui believes that the company's financial statements have been prepared in accordance with the provisions of the Accounting Standards for Business Enterprises in all major aspects, and truly, objectively and fairly reflect the company's operating results, financial status and cash flow; the company has maintained effective internal control over financial reporting in all major aspects in accordance with the "Basic Standards for Enterprise Internal Control" and relevant regulations. Zhonghui issued a standard unqualified annual audit report and internal control audit report. In the process of performing audit work, Zhonghui fully communicated with the company's management and governance on the independence of the accounting firm and relevant auditors, the composition of the audit team, audit plans, risk judgments, risk and fraud testing and evaluation methods, annual audit priorities, audit adjustments, preliminary opinions, etc.
3. The company’s evaluation of the accounting firm’s performance of duties
After evaluation, the company believes that: Zhonghui's qualifications are compliant and valid. It will strictly abide by the principles of independent auditing during its practice in 2025, objectively and fairly reflect the company's financial status and operating results, effectively perform the statutory duties of the audit institution, and complete the company's 2025 audit work on schedule. During the period of practice, no behavior that harmed the interests of the company or the legitimate rights and interests of small and medium-sized shareholders occurred. The audit operations were standardized and orderly, and the relevant reports issued were objective, complete, clear, accurate, timely and compliant.
Board of Directors of Zhejiang Zuoli Pharmaceutical Co., Ltd.
April 27, 2026