Changshan Pharmaceutical: Report on the Audit Committee’s Performance of Supervisory Responsibilities of the Accounting Firm
Audit Committee of the Board of Directors of Hebei Changshan Biochemical Pharmaceutical Co., Ltd.
Report on the accounting firm’s performance of supervisory responsibilities
Hebei Changshan Biochemical Pharmaceutical Co., Ltd. (hereinafter referred to as the company) hired Zhongxi Accounting Firm (Special General Partnership) (hereinafter referred to as Zhongxi Accounting Firm) as the company's 2025 audit agency. In accordance with the "Code of Corporate Governance for Listed Companies", "Administrative Measures for the Selection and Employment of Accounting Firms by State-owned Enterprises and Listed Companies", "Shenzhen Stock Exchange Self-Regulatory Supervision Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies" and other regulations and requirements, the Audit Committee of the company's board of directors performed supervisory duties on the company's audit institution, Zhongxi Accounting Firm, in 2025. The details are as follows:
1. Supervision of accounting firms by the audit committee
(1) The Audit Committee conducted a strict review of the professional capabilities, investor protection capabilities, independence and integrity of Zhongxi Accounting Firm, and believed that it can perform audit duties independently, objectively and fairly during the audit process. The audit report objectively and truly reflects the company's financial status and operating results, and has the professional level and service experience to continue to provide audit work for the company. In order to maintain the continuity of the audit work, it agreed to appoint Zhongxi Accounting Firm (Special General Partnership) as the company's 2025 annual financial report and internal control audit agency. The company held the sixth meeting of the Audit Committee of the sixth board of directors and the fifth meeting of the sixth board of directors, and held the first extraordinary shareholders' meeting of 2025 on December 1, 2025. The company reviewed and approved the "Proposal on Appointment of the Company's Audit Institution for 2025" and agreed to renew the appointment of Zhongxi Accounting Firm as the company's audit institution for 2025.
(2) On December 6, 2025, the Audit Committee held a pre-trial communication meeting through an on-site meeting with the certified public accountants and project managers responsible for the company's audit work, and communicated on the audit scope, important time nodes, personnel arrangements, audit focus and other related matters of the 2025 audit work.
(3) On January 29, 2026, the Audit Committee held a work communication meeting with the certified public accountant and project manager responsible for the company's audit work through an on-site meeting to communicate on the progress of the 2025 audit. Members of the Audit Committee listened to Zhongxi Accounting Firm’s report on the company’s audit progress in 2025.
(4) On April 10, 2026, the members of the Audit Committee held a work communication meeting through an on-site meeting with the certified public accountants and project managers responsible for the company's audit work to communicate on audit adjustments, audit opinions and other matters for 2025. Members of the Audit Committee listened to the report of Zhongxi Accounting Firm on the company's 2025 audit results and other matters.
(5) On April 18, 2026, the company’s audit committee held the eighth meeting of the sixth session of the board of directors’ audit committee, reviewed and approved the company’s 2025 annual financial report, internal control evaluation report and other proposals and agreed to submit them to the board of directors for review.
2. Overall evaluation
The Audit Committee gave full play to its role as a committee, reviewed the relevant qualifications and professional capabilities of Zhongxi Accounting Firm, conducted full discussions and communications with Zhongxi Accounting Firm during the annual report audit, urged the accounting firm to issue audit reports in a timely, accurate, objective and fair manner, and effectively performed the Audit Committee's supervisory responsibilities over the accounting firm.
Board of Directors of Hebei Changshan Biochemical Pharmaceutical Co., Ltd.
April 28, 2026