2025 Internal Control Evaluation Report

Company code: 688166 Company abbreviation: Borui Pharmaceuticals

Borui Biopharmaceutical (Suzhou) Co., Ltd.

All shareholders of Borui Biopharmaceutical (Suzhou) Co., Ltd.:

In accordance with the provisions of the "Basic Standards for Enterprise Internal Control" and its supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the Enterprise Internal Control Standard System), combined with the company's (hereinafter referred to as the company's) internal control system and evaluation methods, and on the basis of daily supervision and special supervision of internal control, we evaluated the effectiveness of the company's internal control on December 31, 2025 (the base date of the internal control evaluation report).

1. Important statement

In accordance with the provisions of the enterprise's internal control normative system, it is the responsibility of the company's board of directors to establish, improve and effectively implement internal control, evaluate its effectiveness, and truthfully disclose the internal control evaluation report. The Audit Committee oversees the company's establishment and implementation of internal controls. Managers are responsible for organizing and leading the daily operation of the enterprise's internal controls. The company's board of directors, directors and senior managers guarantee that there are no false records, misleading statements or major omissions in this report, and bear individual and joint legal liability for the authenticity, accuracy and completeness of the report content.

The goal of the company's internal control is to reasonably ensure legal compliance of operation and management, asset safety, authenticity and completeness of financial reports and related information, improve operating efficiency and effectiveness, and promote the realization of development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving the above objectives. In addition, since changes in circumstances may cause internal controls to become inappropriate, or the degree of compliance with control policies and procedures to be reduced, there is a certain risk in inferring the effectiveness of future internal controls based on the results of internal control evaluations.

2. Conclusion of internal control evaluation

1. Whether the company has any major deficiencies in the internal control of financial reporting on the base date of the internal control evaluation report

□Yes √No

2. Conclusion of the evaluation of internal control over financial reporting

√Valid □Invalid

According to the identification of major deficiencies in the company's internal control over financial reporting, there were no major deficiencies in internal control over financial reporting on the base date of the internal control evaluation report. The board of directors believes that the company has maintained effective internal control over financial reporting in all major aspects in accordance with the requirements of the corporate internal control standard system and relevant regulations.

3. Whether significant deficiencies in internal control over non-financial reporting have been discovered

□Yes √No

According to the identification of major deficiencies in the company's internal control over non-financial reporting, the company found no major deficiencies in internal control over non-financial reporting on the base date of the internal control evaluation report.

4. Factors that affect the conclusion of the internal control effectiveness evaluation from the base date of the internal control evaluation report to the issuance date of the internal control evaluation report

□Applicable √Not applicable

There are no factors that affect the conclusion of the internal control effectiveness evaluation between the base date of the internal control evaluation report and the issuance date of the internal control evaluation report.

5. Whether the internal control audit opinion is consistent with the company’s evaluation conclusion on the effectiveness of internal control over financial reporting

√Yes □No

6. Is the disclosure of major deficiencies in non-financial reporting internal control in the internal control audit report consistent with the disclosure in the company’s internal control evaluation report √ Yes □ No

3. Internal control evaluation work

(1). Scope of internal control evaluation

The company determines the main units, businesses and matters as well as high-risk areas included in the evaluation scope in accordance with the risk-oriented principle.

1. The main units included in the evaluation scope include: Borui Biopharmaceutical (Suzhou) Co., Ltd. and companies within the scope of consolidation

2. Proportion of units included in the evaluation scope:

Indicator Proportion (%) Ratio of the total assets of the units included in the evaluation scope to the total assets of the company's consolidated financial statements 100 Ratio of the total operating income of the units included in the evaluation scope to the total operating income of the company's consolidated financial statements 100

3. The main businesses and matters included in the evaluation scope include:

Organizational structure, development strategy, human resources, social responsibility, corporate culture, financial activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, internal information transfer, information system, legal risk.

4. High-risk areas of focus include:

Research and development, human resources, sales operations, procurement operations, engineering projects, financial reporting, legal risks, capital management, and asset management.

5. The above-mentioned units, businesses, matters and high-risk areas included in the evaluation scope cover the main aspects of the company’s operation and management. Are there any major omissions?

□Yes √No

6. Whether statutory exemptions exist

□Yes √No

7. Other instructions

None

(2). Basis for internal control evaluation and identification standards for internal control deficiencies

The company organizes and carries out internal control evaluation work based on the enterprise's internal control standard system and its supporting guidelines, the company's various internal control systems and process regulations.

1. Whether the specific identification standards for internal control deficiencies have been adjusted from previous years

□Yes √No

The company's board of directors determines major defects, important defects and general defects in accordance with the company's internal control standard system and in conjunction with the company's regulations.

Based on factors such as model, industry characteristics, risk preference and risk tolerance, we distinguish between financial reporting internal control and non-financial reporting internal control, and study and determine the specific identification standards for internal control deficiencies applicable to the company, which are consistent with previous years.

2. Standards for identifying deficiencies in internal control over financial reporting

The quantitative standards for the evaluation of internal control deficiencies over financial reporting determined by the company are as follows:

Indicator name Quantitative standard for major defects Quantitative standard for important defects Quantitative standard for general defects Misstatement ≥ audited business in the previous year Audited operating income in the previous year 0.5% ≤ misstatement Misstatement < audited operating income in the previous year

Income 1% < audited operating income of the previous year 1% Income 0.5% Explanation:

None

The qualitative standards for the evaluation of internal control deficiencies over financial reporting determined by the company are as follows:

Nature of defects Qualitative standards

1. Ineffective company-level control environment

2. There is a material misstatement in the current financial report, but the internal control fails to detect the major flaw in the misstatement during the operation. 3. The audit committee and internal audit institution have ineffective supervision of internal control.

3. Major errors in financial reports have not been corrected.

4. Any degree of fraud involving senior management

5. There are general misstatements in the current financial report, but the internal control failed to detect important flaws in the misstatements during operation. 2. Failure to select and apply accounting policies in accordance with generally accepted accounting principles.

6. Failure to establish anti-fraud procedures and control measures

General deficiencies Other internal control deficiencies that do not constitute major deficiencies or important deficiencies

Description:

None

3. Standards for identifying deficiencies in internal control over non-financial reporting

The quantitative standards for the evaluation of non-financial reporting internal control deficiencies determined by the company are as follows:

Indicator name Quantitative standard for major defects Quantitative standard for important defects Quantitative standard for general defects Loss amount ≥ audited operating income of the previous year 0.5% ≤ loss Loss amount < audited operating income of the previous year

Operating income 1% Amount < audited operating income of the previous year 1% Operating income 0.5% Explanation:

None

The qualitative standards for the evaluation of non-financial reporting internal control deficiencies determined by the company are as follows:

Nature of defects Qualitative standards

1. Violate national laws and regulations and be punished

2. Vicious negative news frequently appears in the media, covering a wide range of areas and the negative impact has not been able to eliminate major defects. 3. There is a serious loss of managers and technical personnel in key positions.

3. Causing major safety accidents

4. Major errors occurred in the decision-making process

5. Defects in important business systems or systems

Important defects 2. Violation of internal rules of the company, resulting in losses

3. Decision-making procedures lead to general errors

General defects refer to other control defects that do not constitute major defects or important defects:

None

(3). Identification and rectification of internal control deficiencies

1. Identification and rectification of internal control deficiencies over financial reporting 1.1. Major deficiencies

Did the company have any major deficiencies in internal control over financial reporting during the reporting period Yes √ No

1.2. Important defects

Does the company have any important deficiencies in internal control over financial reporting during the reporting period? Yes √ No

1.3. General defects

None

1.4. After the above rectification, on the base date of the internal control evaluation report, does the company have any major deficiencies in the internal control of financial reporting that have not been rectified?

□Yes √No

1.5. After the above rectification, on the base date of the internal control evaluation report, does the company have any important deficiencies in the internal control of financial reporting that have not been rectified?

□Yes √No

2. Identification and rectification of internal control deficiencies over non-financial reporting 2.1. Major deficiencies

Did the company discover any major deficiencies in non-financial reporting internal control during the reporting period Yes √ No

2.2. Important flaws

Did the company discover any important deficiencies in non-financial reporting internal control during the reporting period Yes √ No

2.3. General defects

General defects have been rectified.

2.4. After the above rectifications, on the base date of the internal control evaluation report, has the company discovered any major deficiencies in the internal control of non-financial reporting that have not yet been rectified?

□Yes √No

2.5. After the above rectifications, on the base date of the internal control evaluation report, has the company discovered any important deficiencies in the internal control of non-financial reporting that have not yet been rectified?

□Yes √No

4. Description of other major matters related to internal control

1. Rectification of internal control deficiencies in the previous year

□Applicable √Not applicable

2. Internal control operation status this year and improvement directions for the next year

√Applicable □Not applicable

In 2025, the company maintained effective internal control in all major aspects of financial reporting and non-financial reporting, and the internal control operation was generally good. In 2026, the company will continue to strictly implement the relevant internal control systems, strengthen internal control awareness in the company's daily management, optimize the internal control environment, improve the level of internal control management, effectively prevent various risks, and promote the company's healthy and sustainable development.

3. Description of other significant matters

□Applicable √Not applicable

Chairman (authorized by the board of directors): Yuan Jiandong Borui Biopharmaceutical (Suzhou) Co., Ltd.

March 20, 2026