Evaluation report of Zhejiang Shengda Biopharmaceutical Co., Ltd. on Grant Thornton Accounting Firm’s performance of duties in 2025
Zhejiang Shengda Biopharmaceutical Co., Ltd.
Evaluation report on the performance of Grant Thornton Accounting Firm in 2025
Zhejiang Shengda Biopharmaceutical Co., Ltd. (hereinafter referred to as the "Company") hired Grant Thornton Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Grant Thornton Certified Public Accountants" or "Grant Thornton") as the company's 2025 annual financial report and internal control audit agency. According to the "Administrative Measures for the Selection 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 Grant Thornton Accounting Firm's 2025 annual financial report and internal control audit process. After evaluation, the company believes that Grant Thornton Accounting Firm'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 specific situation is as follows:
1. Qualification conditions
- Basic information
Firm name: Grant Thornton Certified Public Accountants LLP (Special General Partnership)
Date of establishment: 1981 (Industrial and commercial registration date: Organizational form: Special general partnership December 22, 2011)
Registered address: 5th Floor, Scitech Plaza, No. 22 Jianguomenwai Street, Chaoyang District, Beijing
Chief Partner Li Huiqi Number of partners at the end of 2025: 244 Certified public accountants practicing at the end of 2025: 1,361 Number of personnel: 461 certified public accountants who have signed securities service business audit reports Total business income: 2.614 billion yuan
2024 (subject to review
Audit business income 2.103 billion yuan
total) business income
Securities business income 482 million yuan
Number of customers: 297
Total audit fees amounted to RMB 386 million
Listed in 2024
Information transmission, software and information technology services industry; Wholesale Division (including A and B shares)
Involving major industries and retail industries; electricity, heat, gas and water production for audit
Application industry; transportation, warehousing and postal industry
The number of audit clients of the company’s listed companies in the same industry is 6. 2. Investor protection capabilities
Grant Thornton Accounting Firm has good investor protection capabilities and has set aside occupational risk funds and purchased occupational insurance in accordance with relevant laws and regulations. As of the end of 2024, Grant Thornton Accounting Firm has accumulated an occupational risk fund of 18.7729 million yuan, and the cumulative compensation limit of purchased occupational insurance is 900 million yuan. The calculation of the occupational risk fund and the purchase of occupational insurance are in compliance with the relevant regulations of the Ministry of Finance on the "Management Measures for the Occupational Risk Fund of Accounting Firms" and other documents. Grant Thornton does not need to bear civil liability for any civil lawsuits related to its practice that have been concluded in the past three years.
- Integrity record
In the past three years, Grant Thornton Accounting Firm (Special General Partnership) has received 0 criminal penalties, 5 administrative penalties, 19 supervisory and management measures, 13 self-regulatory measures and 3 disciplinary sanctions due to its professional practices. In the past three years, 81 employees received 0 criminal penalties, 6 administrative penalties, 20 supervisory and management measures, 11 self-discipline supervision measures and 6 disciplinary sanctions due to their professional behavior.
2. Practice records
1.Basic information
project when became when started when started at when started for
Last name Signed or reviewed listing composition in the past three years Certified accountant Engaged in listing Grant Thornton Accountants Provided by our company
Company audit report
Clerk Corporate Audit Firm Practice Audit Services
Project
Chen Signed or reviewed listed partnerships in the past three years 1999 2002 2013 2025
Ping 1 company audit report.
people
Sign
Registration Hu Signed or reviewed listing in the past three years
2019 2016 2025 2025
Accounting Orange company audit report 1 copy
division
quality
Signed the audit control of listed companies in the past three years Liu
2006 2004 2020 2025 A total of 4 reports. Review and review in the past three years Yi
6 audit reports of listed companies. people
- Integrity record
Project partners, signing certified public accountants, and project quality review personnel have not been subject to criminal penalties for professional conduct, administrative penalties, supervisory and management measures from the China Securities Regulatory Commission and its dispatched agencies, industry authorities, etc., or self-regulatory measures and disciplinary sanctions from self-regulatory organizations such as stock exchanges and industry associations in the past three years.
- Independence
There are no circumstances that may affect the independence of Grant Thornton Certified Public Accountants (special general partnership), project partners, signing certified public accountants, and project quality control reviewers.
- Audit charges
The total audit fees of the company in 2025 are 1.1 million yuan, including 1 million yuan for annual report audit fees and 100,000 yuan for internal control audit fees. This fee is determined through negotiation between Grant Thornton Accounting Firm and the company based on various factors such as the company's business scale, industry, complexity of accounting processing, number of auditors required for the company's annual report audit, workload input, etc., as well as the firm's charging standards, and the price is fair.
3. Procedures for appointing an accounting firm
The company held the third meeting of the Audit Committee of the fourth board of directors in 2025, the 19th meeting of the fourth board of directors and the third extraordinary general meeting of shareholders in 2025 on August 12, 2025, August 22, 2025, and September 10, 2025 respectively. The "Proposal on the Company's Appointment of an Audit Institution for 2025" was reviewed and approved, and it was agreed to appoint Grant Thornton Accounting Firm (Special General Partnership) as the company's 2025 audit institution to be responsible for the audit of the company's 2025 financial report and internal control audit.
4. Quality management level
In accordance with the requirements of the quality management guidelines issued by the Ministry of Finance and based on its own actual situation, Grant Thornton Accounting Firm has gradually established and improved a unified quality management system that covers eight elements: risk assessment procedures, governance and leadership, professional ethics requirements, customer relationships and acceptance and maintenance of specific business, business execution, resources, information and communication, monitoring and rectification procedures, and operates effectively.
1.Project consultation
During the 2025 annual audit process, Grant Thornton Accounting Firm consulted with the professional and technical department in a timely manner on the company's major accounting and audit matters, and solved the company's key and difficult technical problems on time.
- Resolve differences of opinion
Grant Thornton has established a clear mechanism for resolving professional disagreements. When there are unresolved professional differences of opinion between project team members, project quality reviewers or members of the professional and technical department, the person in charge of the professional and technical department needs to be consulted. No report shall be issued until differences of professional opinion have been resolved. During the 2025 annual audit process, Grant Thornton Accounting Firm reached consensus on all major accounting audit matters of the company, and there were no differences of opinion that could not be resolved.
- Project quality review
During the audit process, Grant Thornton Accounting Firm implemented complete project quality review procedures, which mainly include internal review of the audit project team, independent project quality review and professional and technical review.
The internal review of the audit engagement team mainly includes a detailed review of all working papers, as well as a second level review by experienced audit team members. The detailed review and second-level review focus on the adequacy of the audit work performed, the fair presentation of the financial statements and the appropriateness of the audit report.
- Project quality inspection
The quality control department of Grant Thornton Accounting Firm is responsible for the supervision and rectification of the quality management system. The monitoring activities of Grant Thornton Accounting Firm's quality management system include: testing of critical control points of quality management; inspection of completed projects within the scope of the quality management system; independence testing of the firm and individuals in accordance with the requirements of the professional ethics code; and other monitoring activities. Ensure that the project team has fully and appropriately implemented audit procedures in accordance with project quality management requirements before signing the report.
- Quality management defect identification and rectification
Grant Thornton Accounting Firm formulates corresponding internal management systems and policies in accordance with the relevant provisions of the Certified Public Accountants' Code of Professional Ethics and Auditing Standards. These systems and policies constitute Grant Thornton Accounting Firm's complete and comprehensive quality management system. During the 2025 annual audit process, Grant Thornton Accounting Firm was diligent and responsible, and various quality management measures were effectively implemented.
In summary, Grant Thornton Accounting Firm's quality management system is established in accordance with the relevant requirements of laws, regulations and professional standards, and the corresponding internal management policies and procedures formulated and implemented can provide support for the effective operation of Grant Thornton Accounting Firm's quality management system and the high-quality delivery of audit projects.
5. Work plan
In 2025, Grant Thornton Accounting Firm developed a comprehensive, reasonable, and highly operable audit work plan based on the company's audit needs and the company's actual situation, equipped with a dedicated audit team, clarified service plans, processes and methods, and formulated complete safeguards. The audit work focuses on the company's audit focus, including revenue recognition, cost accounting, asset impairment, deferred income tax recognition, financial instruments, consolidated statements, related party transactions, etc. Grant Thornton Accounting Firm fully cooperated with the company's audit work, fully met the company's report disclosure time requirements, and was able to submit various tasks on time according to planned arrangements.
6. Allocation of human resources and other resources
Grant Thornton Accounting Firm is equipped with an exclusive audit team. The core team members have many years of experience in listed companies and have professional qualifications such as Chinese Certified Public Accountants. The project responsible partner and project site manager shall be senior audit service partners.
Grant Thornton Accounting Firm's back-end support team includes experts in multiple fields such as taxation, information systems, internal control, risk management, financial management, financial tools and sustainable development services, and technical experts are in the back-end and participate in the full support of audit services.
7. Information Security Management
Grant Thornton Accounting Firm has formulated a systematic information security control system covering file management, confidentiality system, emergency handling, etc. In the process of formulating audit plans and implementing audit work, it also considers the inspection, processing, desensitization and archiving management of sensitive and confidential information, and can effectively implement it to ensure effective management of information security to safeguard customer interests and reputations and ensure the continued safe operation of the business.
8. Risk-taking ability level
Grant Thornton Accounting Firm sets aside professional risk funds and purchases professional liability insurance in accordance with the relevant provisions of the Ministry of Finance's "Measures for the Management of Professional Risk Funds of Accounting Firms" and "Interim Measures for Professional Liability Insurance of Accounting Firms" and other documents. As of the end of 2024, an occupational risk fund of RMB 18.7729 million has been set aside, and the occupational insurance purchased has a cumulative compensation limit of RMB 900 million, demonstrating the ability to protect investors.
Zhejiang Shengda Biopharmaceutical Co., Ltd.
April 23, 2026