Pailin Biotech: Report on the performance of supervisory responsibilities by the audit committee of the board of directors on the accounting firm
Pais Shuanglin Biopharmaceutical Co., Ltd.
Report on the performance of supervisory responsibilities by the audit committee of the board of directors on the accounting firm
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 of Listed Companies", "Administrative Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies" and "Self-Discipline Supervision Guidelines for Listed Companies of the Shenzhen Stock Exchange No. 1" No. - Standardized Operation of Main Board Listed Companies" and the "Articles of Association of Pais Shuanglin Biopharmaceutical Co., Ltd." and other regulations and requirements. In 2025, the Audit Committee of the Board of Directors of Pais Shuanglin Biopharmaceutical Co., Ltd. (hereinafter referred to as the "Company") conscientiously performed its obligations of loyalty and diligence, performed its duties conscientiously, and prudently performed its supervisory responsibilities over the accounting firm. The ninth meeting of the Audit Committee of the 10th Board of Directors reviewed and approved the "Report on the Audit Committee's Performance of Supervisory Responsibilities for the Accounting Firm". The details are as follows:
1. Basic situation of accounting firms
KPMG Huazhen LLP (Special General Partnership) (hereinafter referred to as "KPMG Huazhen") was established in Beijing on August 18, 1992, and was converted into a special general partnership with the approval of the Ministry of Finance on July 5, 2012. KPMG Huazhen Headquarters is located in Beijing, with its registered address on the 8th floor, Office Building 2, Oriental Plaza East, No. 1 East Chang'an Street, Dongcheng District, Beijing. As of December 31, 2025, it had 247 partners, with Mr. Zou Jun as the chief partner, and 1,412 practicing certified public accountants, including more than 330 certified public accountants who have signed securities service business audit reports.
2. Procedures for appointing an accounting firm
The company held the 17th meeting of the 10th board of directors and the second extraordinary general meeting of shareholders in 2025 on August 20, 2025 and September 8, 2025, respectively, and reviewed and approved the "Proposal on Renewal of the Company's Audit Institution in 2025" and agreed to re-appoint KPMG Huazhen as the company's 2025 financial report and internal control audit institution.
3. Supervision of accounting firms by the audit committee
Members of the Audit Committee of the company's board of directors reviewed KPMG Huazhen's relevant information on professional competence, investor protection capabilities, integrity and independence, and believed that it could meet the requirements for providing audit services to the company. The Audit Committee of the Board of Directors negotiates with the accounting firm to determine the timetable and audit plan for the annual financial report audit, and urges it to submit the audit report within the agreed time limit. The Audit Committee of the Board of Directors regularly listens to the accounting firm's reports on the audit, review and implementation of agreed procedures for regular financial reports, reviews and approves proposals such as regular reports and internal control evaluation reports, and agrees to submit them to the Board of Directors for review.
4. Overall evaluation
The Audit Committee of the Company's Board of Directors strictly abides by the relevant regulations of the China Securities Regulatory Commission, the Shenzhen Stock Exchange and the "Articles of Association of Pais Shuanglin Biopharmaceutical Co., Ltd." and "Working Rules of the Audit Committee of the Board of Directors of Pais Shuanglin Biopharmaceutical Co., Ltd.". It gives full play to the role of the Audit Committee of the Board of Directors, reviews the relevant qualifications and professional capabilities of the accounting firm, conducts full discussions and communication with the accounting firm during the annual report audit, urges the accounting firm to issue audit reports in a timely, accurate, objective and fair manner, and effectively performs the supervisory responsibilities of the Audit Committee of the Board of Directors over the accounting firm.
Audit Committee of the Board of Directors of Pais Shuanglin Biopharmaceutical Co., Ltd.
April 29, 2026