2025 Duty Performance Report of the Audit Committee of Jiangsu Shuoshi Biotechnology Co., Ltd.
Jiangsu Shuoshi Biotechnology Co., Ltd.
2025 Duty Performance Report of the Audit Committee of the Board of Directors
In 2025, as members of the Audit Committee of Jiangsu Shuoshi Biotechnology Co., Ltd. (hereinafter referred to as the "Company"), we strictly followed the "Operational Guidelines for Audit Committees of Boards of Directors of Listed Companies of Shanghai Stock Exchange", "Listed Company Governance Code", "Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Rules" and the "Articles of Association" and other relevant regulations and requirements. In line with the principles of objectivity, fairness and independence, we diligently performed our duties and conscientiously performed our corresponding duties and obligations. We now report on our performance of duties in 2025 as follows:
1. Basic information of the Audit Committee
The Audit Committee of the third session of the company's board of directors consists of 3 members: Liu Xiaolun, Yang Shunhai, and Guo Haitao, including 2 independent directors, accounting for 2/3. The convener is Mr. Liu Xiaolun, an independent director with professional accounting qualifications, which complies with regulatory requirements and relevant provisions of the Articles of Association.
2. Meeting status
In 2025, the Audit Committee of the company's board of directors held a total of 4 meetings. The details are as follows:
On April 16, 2025, the first meeting of the Audit Committee of the third board of directors in 2025 reviewed and approved the "Proposal on the 2024 Annual Report and Summary", "The Proposal on the 2024 Internal Control Evaluation Report", "The Proposal on the Occupation of Funds by Controlling Shareholders and Other Related Parties", "The Proposal on the Company and its Subsidiaries' Application for Bank Credit in 2025" and other proposals;
On April 28, 2025, the second meeting of 2025 of the Audit Committee of the third board of directors reviewed and approved the "Proposal on the Company's "First Quarter Report of 2025"" and "Proposal on the Accounting and Reversal of Asset Impairment Provisions in the First Quarter of 2025";
On August 6, 2025, the third meeting of the Audit Committee of the third board of directors in 2025 reviewed and approved the "Proposal on the Company's 2025 Half-Year Report and its Summary", "The Proposal on the Special Report on the Storage and Use of Funds Raised in the Company's 2025 Half-Year", "The Proposal on the Re-appointment of the Accounting Firm" and other proposals;
On October 22, 2025, the Fourth Meeting of the Audit Committee of the Third Board of Directors in 2025 reviewed and approved the "Proposal on the Company's Third Quarter Report for 2025", "Proposal on the Use of Idle Raised Funds for Cash Management", "Proposal on the Use of Idle Own Funds for Cash Management" and other proposals.
3. Main work and performance of duties of the Audit Committee
(1) Supervise and evaluate the work of external audit institutions
The Company's Audit Committee strictly abides by the relevant regulations of the China Securities Regulatory Commission, the Shanghai Stock Exchange, the Articles of Association, the Working Rules of the Audit Committee of the Board of Directors, etc., gives full play to the role of professional committees, 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 audit committee's supervision responsibilities over the accounting firm. The company held the third meeting of the Audit Committee of the third board of directors in 2025 on August 6, 2025, and reviewed and approved the "Proposal on the Company's Re-appointment of the Accounting Firm", agreed to re-appoint Lixin as the company's audit agency for 2025, and submitted the above proposal to the company's board of directors for review. On August 7, 2025, the company held the twelfth meeting of the third board of directors, and reviewed and approved the "Proposal on the Company's Re-appointment of the Accounting Firm". The proposal was later reviewed and approved by the company's 2025 First Extraordinary General Meeting of Shareholders held on August 27, 2025, and it was agreed to re-appoint Lixin as the company's audit agency for 2025.
(2) Guidance and evaluation of the company’s internal audit work
During the reporting period, the company's internal audit department independently carried out internal audit work under the leadership of the Audit Committee. The Audit Committee continued to pay attention to the effectiveness of internal audit work and provided guiding opinions to the internal audit work department to promote the effective operation of the internal audit department. Each committee member supervised the legal compliance and financial management of the company's various businesses, inspected and evaluated the integrity, rationality and effectiveness of the internal control system and its implementation, carefully reviewed the internal control self-evaluation report of the previous year, and found no major problems in the company's internal audit work.
The company's internal audit work system is basically sound, the internal audit work is carried out effectively, and rectification opinions and suggestions can be made in a timely manner on the problems discovered during the internal audit, which promotes the company's standardized operation.
(3) Review of the company’s financial report
In 2025, the Audit Committee reviewed the company's regular reports, communicated extensively with the company's management on the preparation of financial reports and key matters, and supervised the authenticity, accuracy and completeness of the company's financial reports from a professional perspective. The Audit Committee believes that the company's financial reports are true and accurate, that there are no major deficiencies in the company's internal controls, and that effective internal controls are maintained in all major aspects.
(4) Guidance and review of the company’s internal controls
In 2025, the Audit Committee actively promoted the construction of the company's internal control system, strengthened and improved the company's internal control evaluation and management, and urged the company's internal audit institution to complete the internal control self-evaluation work. After review, the actual operation of the company's internal control complied with the requirements of the relevant regulatory authorities for the basic norms of corporate internal control. The Audit Committee recommends that the company continue to improve the corporate governance structure, improve the internal management and control system, and ensure that the internal control system is compatible with the company's development based on environmental changes and company needs.
(5) Taking over the relevant powers of the Board of Supervisors
The company held the 2025 second extraordinary general meeting of shareholders on November 11, 2025, and reviewed and approved the "Proposal on Changing the Registered Capital, Cancel the Supervisory Board, and Amend the Articles of Association." According to the "Company Law" and other relevant regulations, and based on the company's actual situation, the company will no longer have a supervisory board, and the relevant powers of the supervisory board will be exercised by the Audit Committee of the Board of Directors. The Audit Committee has assumed relevant powers in accordance with the relevant provisions of laws, regulations, regulatory rules and the Articles of Association.
4. Overall evaluation
In 2025, the Audit Committee worked diligently and fulfilled its duties, actively participated in corporate governance, ensured that the audit work was standardized and followed rules, and played a positive role in promoting the company's internal control construction and improving the company's audit work.
In 2026, the Audit Committee will continue to play the role of review and supervision, strengthen communication with the company's operating management and internal and external audit institutions, effectively perform its responsibilities within its scope of authority, ensure effective supervision of the operating management, and safeguard the legitimate rights and interests of the company and investors.
Audit Committee of the Board of Directors of Jiangsu Shuoshi Biotechnology Co., Ltd.
April 21, 2026