Tasly's 2025 Accounting Firm Performance Evaluation Report
Tasly Pharmaceutical Group Co., Ltd.
2025 Accounting Firm Performance Evaluation Report
Tasly Pharmaceutical Group Co., Ltd. (hereinafter referred to as the "Company") hired KPMG Huazhen LLP (Special General Partnership) (hereinafter referred to as "KPMG Huazhen") as the company's 2025 financial report auditor and internal control auditor. According to the "Administrative Measures for the Selection and Employment of Accounting Firms by State-owned Enterprises and Listed Companies" promulgated by the Ministry of Finance, the State-owned Assets Supervision and Administration Commission and the China Securities Regulatory Commission, the company evaluated the performance of KPMG Huazhen during the 2025 audit process. After evaluation, the company believes that KPMG Huazhen's qualifications and other aspects are compliant and effective, that it maintains independence in performing its duties, is diligent and conscientious, and expresses its opinions fairly. The details are as follows:
1. Situation of accounting firms
- Basic information
KPMG Huazhen was established in Beijing on August 18, 1992. On July 5, 2012, it was approved by the Ministry of Finance to transform into a special general partnership. It was renamed KPMG Huazhen (Special General Partnership). It obtained the industrial and commercial business license on July 10, 2012, and officially started operations on August 1, 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. Zou Jun, the chief partner of KPMG Huazhen, is a Chinese national and has the qualification of a Chinese certified public accountant.
As of December 31, 2025, KPMG Huazhen had 247 partners and 1,412 certified public accountants, including more than 330 certified public accountants who have signed securities service business audit reports.
KPMG Huazhen's total audited business income in 2024 will exceed RMB 4.1 billion, of which audit business income will exceed RMB 4 billion (including domestic statutory securities service income of more than RMB 900 million, other securities service income of approximately RMB 1 billion, and securities service income in total to exceed RMB 1.9 billion).
KPMG Huazhen has 127 listed companies' annual report audit clients in 2024, and the total audit fees for listed companies' financial statements are approximately RMB 682 million. The main industries of these listed companies include manufacturing, finance, transportation, warehousing and postal services, information transmission, software and information technology services, real estate, electricity, heat, gas and water production and supply, mining, wholesale and retail, agriculture, forestry, animal husbandry, fishery, accommodation and catering, scientific research and technical services, health and social work, water conservancy, environment and public facilities management, culture, sports and entertainment and leasing and business services.
- Procedures for hiring an accounting firm
The company's seventh meeting of the Audit Committee of the ninth board of directors held on December 9, 2025, the 16th meeting of the ninth board of directors held on December 9, 2025, and the sixth extraordinary shareholders' meeting held on December 26, 2025 all reviewed and approved the "Proposal on Changing the Accounting Firm" and agreed to hire KPMG Huazhen as the company's 2025 financial statements and internal control audit agency.
2. Practice records
- Basic information
The basic information of KPMG Huazhen’s project partners, signing certified public accountants and project quality control reviewers for the company’s 2025 financial statement audit project is as follows:
Zhou Yongming, the project partner of this project, obtained the Chinese Certified Public Accountant qualification in 2010. Mr. Zhou Yongming began practicing at KPMG Huazhen in 2003. He began to audit listed companies in 2003 and began to provide audit services to the company in 2025. Zhou Yongming signed or reviewed 8 audit reports of listed companies in the past three years.
Chen Wenxin, the CPA who signed this project, obtained the Chinese CPA qualification in 2011. Ms. Chen Wenxin began practicing at KPMG Huazhen in 2006. She began to audit listed companies in 2006 and will provide audit services for the company from 2025. Chen Wenxin has signed or reviewed 6 audit reports of listed companies in the past three years.
Yang Xin, the quality control reviewer for this project, obtained the Chinese Certified Public Accountant qualification in 2001. Ms. Yang Xin began practicing at KPMG Huazhen in 1997. She began to audit listed companies in 2012 and will provide audit services for the company from 2025. Yang Xin has signed or reviewed 8 audit reports of listed companies in the past three years.
- Integrity record
None of the project partners, signing certified public accountants and project quality control reviewers have been subject to any criminal penalties, administrative penalties, administrative supervision measures, self-regulatory supervision measures or disciplinary sanctions due to their professional conduct in the past three years.
- Independence
KPMG Huazhen and its project partners, signing certified public accountants, and project quality control reviewers maintained their independence in accordance with the provisions of the professional ethics code.
3. Work plan
During the 2025 annual audit process, KPMG Huazhen formulated a comprehensive, reasonable, and highly operable audit work plan based on the company's service needs and the actual situation of the audited unit. The audit work focuses on the audit focus of the audited unit. KPMG Huazhen fully cooperated with the company's audit work and met the report disclosure time requirements of listed companies.
4. Allocation of human resources and other resources
KPMG Huazhen is equipped with an exclusive audit team. The core team members all have many years of experience in auditing listed companies and have professional qualifications as Chinese Certified Public Accountants.
5. Information Security Management
The company clearly stipulated the responsibilities and obligations of KPMG Huazhen in information security management in the employment contract. KPMG Huazhen has formulated a systematic information security control system covering file management, confidentiality system, etc. In the process of formulating audit plans and implementing audit work, it also considers the inspection, processing, desensitization and archiving management of sensitive information and confidential information, and can effectively implement it.
6. Risk-taking ability level
KPMG Huazhen has good investor protection capabilities and has accrued occupational risk funds and purchased occupational insurance in accordance with relevant laws and regulations. The accrual of occupational risk funds and the purchase of occupational insurance are in compliance with relevant regulations of the Ministry of Finance on the "Management Measures for Occupational Risk Funds of Accounting Firms" and other documents.
7. Duty performance of the accounting firm in the 2025 annual audit
In accordance with the "Audit Engagement Letter", the "Audit Standards for Chinese Certified Public Accountants" and other professional standards and the company's 2025 annual report work arrangements, KPMG Huazhen conducted independent audits in a fair and objective manner. In the process of performing the audit work, KPMG Huazhen communicated with the corporate governance and management on the independence of relevant auditors, the composition of the audit team, audit plans, risk judgments, risk and fraud testing and evaluation methods, annual audit priorities, audit adjustment matters, audit opinions, etc.
KPMG Huazhen audited the company's 2025 financial report and issued a standard unqualified audit report. It believed that the financial statements were prepared in accordance with the Accounting Standards for Business Enterprises in all material aspects and fairly reflected the consolidated and parent company's financial results of Tasly Pharmaceutical Group Co., Ltd. on December 31, 2025. financial status, as well as the merger and parent company's operating results and cash flow in 2025; the effectiveness of the internal control of the financial report on December 31, 2025 was audited and an audit report was issued; at the same time, the annual non-operating fund occupation and other related fund transactions were reviewed and a special report was issued.
Tasly Pharmaceutical Group Co., Ltd.
March 18, 2026