Jingxin Pharmaceutical: 2025 Internal Control Self-Evaluation Report

Zhejiang Jingxin Pharmaceutical Co., Ltd.

Annual internal control self-evaluation report

2025

All shareholders of Zhejiang Jingxin Pharmaceutical 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 internal control system and evaluation methods of Zhejiang Jingxin Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company"), and on the basis of daily supervision and special supervision of internal control, the company's board of directors evaluated the effectiveness of internal control as of December 31, 2025.

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 establishment and implementation of internal controls by the Board of Directors. 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

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 material aspects in accordance with the requirements of the corporate internal control standard system and relevant regulations.

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.

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. The internal control system that the company has established does not have any major flaws in terms of integrity, compliance, effectiveness, etc.

3. Internal control evaluation work

The company's board of directors is the highest decision-making body for the company's internal control evaluation. It is responsible for organizing, leading and supervising internal control evaluation work, listening to internal control evaluation work reports, reviewing and approving rectification opinions on internal control deficiencies, and approving the external disclosure of internal control self-evaluation reports. The Audit Committee is responsible for reviewing the company's internal controls, supervising the effective implementation of internal controls and internal control self-evaluation, and coordinating internal control audits and other related matters. The company's board of directors authorizes the audit department to be responsible for the specific organization and implementation of internal control evaluation, evaluate high-risk areas and units included in the evaluation scope, and prepare the company's internal control self-evaluation report.

(1) Scope of internal control evaluation

With the continuous efforts of the board of directors, management and all employees, the company has established a relatively complete and effective internal control system. Systematic internal controls and necessary internal supervision mechanisms have been established from the company level to each business process level, providing reasonable guarantees for the legal compliance of the company's operation and management, asset security, and the authenticity and completeness of financial reports and related information.

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. The main units included in the evaluation scope include: Zhejiang Jingxin Pharmaceutical Co., Ltd., Shaoxing Jingxin Pharmaceutical Co., Ltd., Shangrao Jingxin Pharmaceutical Co., Ltd., Inner Mongolia Jingxin Pharmaceutical Co., Ltd., Yunnan Jingxin Biotechnology Co., Ltd., Shanghai Jingxin Biopharmaceutical Co., Ltd., Zhejiang Jingxin Pharmaceutical Import and Export Co., Ltd., Shenzhen Jufeng Display Technology Co., Ltd., Shenyang Torch Beitai Digital Technology Co., Ltd., Shenzhen Jufeng Software Technology Co., Ltd., HONG KONG BEACON MEDICALLIMITED (Hong Kong Jufeng Medical Equipment Co., Ltd.), BEACON KOREAINC, Jingxin Group (Hong Kong) Co., Ltd., Hangzhou Jingrui Pharmaceutical Technology Co., Ltd., Zhejiang Jingxin Pharmaceutical Co., Ltd., Shandong Jingxin Pharmaceutical Co., Ltd., Guangdong Shaxi Pharmaceutical Co., Ltd., Hangzhou Jingsheng Biopharmaceutical Co., Ltd., Zhejiang Jingjianyuan Medical Technology Co., Ltd., Hangzhou Jingjianya Biomedical Technology Co., Ltd., Hangzhou Jingzhe Biomedical Technology Co., Ltd., Zhejiang Jingxin Biotechnology Co., Ltd., Hainan Jingjianya Management Consulting Co., Ltd., Hong Kong Jingxin Co., Ltd., etc. The total assets of the units included in the evaluation scope account for 100% of the company's total assets in the company's consolidated financial statements, and the total operating income accounts for 100% of the company's total operating income in the company's consolidated financial statements. The main businesses and matters included in the evaluation scope include: governance structure, organizational structure, development strategy, operation management, human resources, social responsibility, corporate culture, fund management, procurement business, sales business, production quality, fixed asset management, investment, financing, EHS management, R&D management, engineering project management, external guarantees and related transactions, financial reporting, etc. High-risk areas of focus include: procurement business, sales business, production quality, asset management, external investment and related transactions, financial reporting, etc.

1. Governance organization

In accordance with the requirements of the Company Law, the Securities Law, the Code of Governance of Listed Companies, the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations of Main Board Listed Companies, and the provisions of the Articles of Association, the company has established a shareholders' meeting and a board of directors, and formulated supporting procedural rules and systems such as the Rules of Procedure for the Shareholders' Meeting, the Rules of Procedure for the Board of Directors, and the Working System for Independent Directors. The shareholders' meeting and the board of directors respectively exercise decision-making, executive and supervisory powers in accordance with their respective responsibilities. The institutional powers and responsibilities are clear, mutually independent, mutually checked and balanced, and operate in a standardized manner. The shareholders' meeting enjoys the legal rights stipulated in laws, regulations and the company's articles of association, and exercises its decision-making power on major matters such as the company's operating policies, financing, investment, and profit distribution in accordance with the law. The board of directors is responsible to the shareholders' meeting, implements the resolutions of the shareholders' meeting, and exercises the company's business and management rights in accordance with the law. The Board of Directors consists of the Audit Committee, the Remuneration and Appraisal Committee, the Nomination Committee and the Strategy Committee. More than half of the independent directors in the Audit Committee, the Remuneration and Appraisal Committee and the Nomination Committee serve as conveners. Matters involving professional fields must be submitted to the Board of Directors after being reviewed by the professional committees, so that independent directors and directors with corresponding professional backgrounds can better play their roles. According to the authorization of the board of directors, the management is responsible for organizing and implementing resolutions of the shareholders' meeting and the board of directors, and presides over the daily operation and management of the enterprise.

The audit committee under the board of directors consists of 5 directors and 3 independent directors, one of whom is an accounting professional. According to the "Rules of Procedure of the Audit Committee of the Board of Directors" and other regulations, it is proposed to hire or replace an external audit agency to be responsible for the coordination of internal audit and external audit, supervise and evaluate the company's internal control, etc. The company's audit department has the professional ability to independently conduct audit work. In accordance with the provisions of the "Internal Audit System", it supervises, inspects and evaluates the effectiveness of the internal controls of the company and its subsidiaries.

Before October 10, 2025, the Supervisory Board will consist of three members. The Supervisory Board will supervise the establishment and implementation of internal controls by the Board of Directors. On October 10, 2025, the company held a shareholders' meeting to amend the "Articles of Association" and the company will no longer have a board of supervisors.

2. Institutional setup and distribution of powers and responsibilities

The company sets up internal institutions based on its own business characteristics and internal control requirements, clarifies responsibilities and authorities, and assigns rights and responsibilities to each responsible unit.

The board of directors is responsible for the establishment, improvement and effective implementation of internal control and risk management functions. The Audit Committee is established under the Board of Directors to continuously supervise the company's risk management and internal control systems, evaluate the effective implementation of internal controls and internal control self-evaluation, and guide and coordinate internal audits and other related matters. The management level responsible for the president organizes and leads the daily operation of the enterprise's internal control. The company has formulated departmental responsibilities and job descriptions for each position. The responsibilities of each functional department are clear and check and balance each other to ensure the efficient, stable and orderly development of the company's production and operation activities.

3. Development strategy

The company's board of directors has a Strategy Committee, which has established the "Strategy Committee Rules of Procedure" and other related systems. The Board Strategy Committee is a specialized working organization established by the board of directors in accordance with the resolution of the shareholders' meeting. It is mainly responsible for studying and making recommendations on the company's long-term development strategy and major investment decisions. The company clearly clarifies the division of responsibilities, approval authority and operating procedures in terms of development strategy. Based on the internal and external environment and the development direction of the national pharmaceutical industry, the company's strategy committee has formulated strategic business goals that are in line with the company's actual situation, and has formulated clear implementation strategies by breaking them down into business segments year by year, and then implemented them. Based on the comparison between the annual business plan and the actual implementation, the Strategy Committee regularly reviews and analyzes the impact of the overall business situation on the implementation of the strategy, refines and continuously revise the key issues that affect the achievement of the strategy, and includes them in the next year's business plan and supervises its implementation.

4. Operation management

The Operations Department revised the "Management Regulations on the Operating Mechanism and Operation and Management Authority of Joint-stock Companies and Subsidiaries" to clarify the operating mechanism of each branch (subsidiary) and the relationship with the joint-stock company. The system elaborates on the mutual responsibilities and division of labor between the joint-stock company and each branch (subsidiary) in terms of human, financial, and affairs. It lays a solid foundation for standardizing the relationship between the joint-stock company and each branch (subsidiary), clarifying the powers of both parties, and maximizing the overall interests of the company.

5. Human resources

The company attaches great importance to the core role of human resources management in internal control. We continue to optimize the human resources management system, strictly standardize the operating procedures of key links such as recruitment, training, performance appraisal, salary and benefits, and employee resignation, and establish an internal control system covering the entire process of "selection, recruitment, retention, and retirement" of human resources. We have formulated human resource systems such as the "General Principles of Human Resources Management", "Organizational Structure and Establishment Management System", "Salary Management System", "Performance Management System", "Benefits Management System", "Working Time and Attendance Management Regulations", "Employee Flow Management System", "Employee Discipline Management System", "Cadre Management System", "Core Employee Management Regulations", "Recruitment Management System", "Probationary Period Management Regulations", "Training Management System", "Internal Trainer and Course Management Rules". At the same time, we strictly abide by national labor regulations, pay attention to the protection of employees' rights and interests and career development, effectively prevent major risks in human resources management, and ensure the stable operation of the company's business activities.

6. Social responsibility

With the mission of "carefully guarding health", the company carries forward the people-oriented spirit of care, devotes itself to the research and development of health products, carefully produces high-quality products, and is committed to human health. As a listed pharmaceutical company, the company actively assumes social responsibilities and relies on the Jingxin Charity Fund platform to continue to help employees and families in need. In 2025, the company will continue to support people's livelihood co-construction activities such as "Rural Care for Folks" to help rural revitalization and common prosperity. At the same time, the company unites employees and delivers care by holding family open days, cultural and sports games and other activities. In the face of industry changes, the company adheres to innovation, promotes AI intelligent upgrades and organizational optimization, fulfills its original mission with high-quality development, and demonstrates the responsibility of Jingxin employees.

7. Corporate culture

In the process of enterprise development, Jingxin has formed a unique corporate culture. The company takes "carefully protecting health" as its mission, takes "pragmatism, innovation, inclusiveness, and win-win" as its core values, adheres to the business philosophy of "customer-centered, innovation-driven development", adheres to the production quality concept of "Jingxin Medicine, Carefully Made", and practices the talent concept of "creating and sharing value, growing together".

The company has always insisted on empowering development with culture, promoting the deep integration of corporate culture and strategy, so that cultural concepts can truly be transformed into the conscious actions and behavioral habits of all Jingxin people, and continue to demonstrate cultural soft power. The company takes three organizational capabilities and six core qualities as important starting points to solidly promote the implementation of corporate culture. It systematically carries out a series of cultural activities such as sports games, reading clubs, traditional festival care, annual commendation conferences, and corporate culture case studies. It strives to cultivate employees' positive values ​​​​and social responsibility, and vigorously advocates the core qualities of seriousness and responsibility, dedication, efficient execution, pioneering and enterprising, embracing change, and win-win cooperation. It continuously enhances employee cohesion, sense of belonging, and identity, and provides solid cultural support and spiritual power for the company's high-quality and sustainable development.

8. Fund management

The company has formulated internal control systems for financial activities including the "Regulations on the Management of Payment Approval Authority", "Cashier Operation Processing Guidelines", "Cash and Securities Business Processing Procedures", "Foreign Exchange Payment Financial Management Regulations", etc., which regulates the division of responsibilities, authorization and approval regulations, and funds in fund management. Plan management, cash management, bank management, supervision and inspection and other aspects have been standardized, the centralized management of capital activities has been strengthened, the responsibilities and authority and job separation requirements of various aspects such as financing, investment and operation have been clarified, and the accountability system has been implemented to ensure the safety and effective operation of funds.

9. Procurement business

The Procurement Department has refined the requirements for supplier access management and strengthened the signing of the "Supply Agreement", "Quality Agreement", "Integrity Agreement" and the investigation of "Supplier Corporate Social Responsibility". In terms of price negotiations, pre-audit supervision has been strengthened. In terms of procurement business operations, operations are carried out through the SRM system to ensure that procurement traces are left and facilitate statistics and data analysis. In addition, in order to ensure the accuracy of accounts payable records, the company's purchasing department and finance department check the accounts payable balance at the end of each month to form a mutual supervision mechanism and regularly conduct reconciliations with suppliers through incoming and outgoing confirmation letters. The audit department regularly reviews the purchase account amounts and financial accounting amounts.

The company has developed a relatively complete control system for the procurement and payment management links, and the corresponding control system has been effectively implemented, playing a good management and control role in all aspects of procurement and payment management.

10. Sales business

The company has formulated a drug sales system and an API sales system respectively.

Raw material sales are standardized in terms of sales planning, price management, credit management, sales contract and order management, sales shipments, sales returns, accounts receivable management and other related processes. Sales plan management stipulates that the sales service department shall prepare an "Annual Sales Plan" reviewed by the management before the end of December of that year based on the "Company Annual Business Plan" approved by the general manager; each business department shall, based on the "Annual Sales Plan", quarterly and monthly sales contracts (orders) ), customer demand forecast (customer potential expectations) and the implementation of last month's sales plan, etc., the reviewed "Monthly Sales Plan" is prepared and reviewed by the sales service department; delivery management stipulates the specific operating procedures for filling in delivery notices, preparing goods for shipment, and shipping goods. Collection management stipulates that the settlement method should be clearly specified in the sales contract when the contract is signed, and the salesperson should promptly remind the customer to pay according to the terms of the contract. The sales back office will promptly notify the corresponding sales clerk of the payment details and receivable details every week.

The company has formulated a relatively complete control system for the sales management link, and the corresponding control system is effectively implemented, playing a good management and control role in all aspects of sales and collection management.

11. Production quality

The company regards quality as life and always adheres to the production quality concept of "Beijing New Drug, Carefully Made". The company has established a strict production quality management system, effectively implements Chinese GMP, European Union EU-GMP and American cGMP, and promises that the products and its manufacturing process will always meet the safety, effectiveness and quality controllability of drugs.

12. Fixed assets

The company has formulated the "Fixed Asset Management Regulations", and the acquisition, movement, scrapping and disposal of the company's fixed assets are subject to step-by-step approval procedures. For fixed assets that are to be scrapped before their expiry date, the user department should also issue a scrapping statement, clarify the responsibilities, and bear the asset losses. The company's internal control over fixed assets is good.

13. Investment

The company has formulated institutional processes such as the "Introduction and Investment Project Decision-making Process Management System" and the "Project Investment Management System" to clarify the decision-making process for project evaluation and project review, as well as project post-investment management standards to reduce the risks of external investment and ensure the safety of funds. The company has a dedicated investment management department that conducts research and evaluation on the feasibility, investment risks, investment returns and other matters of the company's major investment projects in accordance with standard procedures; it continuously tracks and evaluates the value and risks of invested projects, formulates corresponding post-investment management or exit strategies and strictly implements them.

14. Fundraising

The company has formulated the "Bank Financing Management Regulations", which clearly stipulate the methods and categories of financing, decision-making procedures for financing activities, financing authority and management responsibilities. The company's financing activities are well controlled.

15. EHS management

The company's safety and environmental protection management department is specifically responsible for EHS management. In 2025, it has established or optimized EHS management system processes such as the "Internal Reporting Reward System for Hidden Accident Hazards", "Safety Management Regulations for Renovation and Installation Projects", and "Rewards and Punishment Management Regulations for Safety Production" and strictly implemented them. It will continue to improve EHS compliance management, promote the construction of environmental, safety, and occupational health management systems, and improve the company's EHS management level.

In terms of environmental protection, the company's environmental protection work adheres to the principle of "prevention first, combining prevention and control, and comprehensive management"; adheres to the principle of promoting clean production and implementing pollution control throughout the production process; implements the principle of pollutant emission standards and total pollutant control; adheres to environmental protection work as a necessary condition for selecting advanced ones, and implements a one-vote negative system. Strictly implement the laws, regulations and other requirements of relevant national, provincial, municipal and county departments on environmental protection, advocate the concept of green environmental protection, follow the path of sustainable development, and achieve a "win-win" between the economy and the environment.

In terms of safety management, safety production work implements the national policy of "safety first, prevention first, comprehensive management" and adheres to the principles of "safety must be managed when managing the industry", "safety must be managed when managing business", "safety must be managed when managing production and operations" and "whoever is in charge is responsible". The Safety and Environmental Protection Management Department strengthens the supervision of safety production work, continues to carry out safety production education and training, popularizes safety production knowledge, continuously enhances the safety awareness of all employees, and improves the safety prevention capabilities of corporate employees.

In terms of occupational health management, the company conscientiously implements the occupational disease prevention and control policy of "prevention first, combining prevention and control", regularly carries out workplace occupational disease hazard factor testing and employee occupational health examinations, effectively performs the company's occupational health management work, creates a working environment and conditions for the company's employees that comply with national occupational health standards and hygiene requirements, and establishes and passes the occupational health and safety management system certification, in line with Comply with GB/T45001-2020/ISO45001:2018 standards to ensure employees’ occupational health.

16. R&D management

The company's research institute has established a complete new product research and development management system and process, and formulated institutional systems such as innovative R&D plans, R&D project management systems, document and technical data management systems, intellectual property and patent management regulations, and talent innovation incentive mechanisms. Through institutionalized management processes, we implement product technical evaluation and market evaluation, ensure the implementation of projects, improve R&D efficiency and the internal driving force of the R&D team. R&D management work runs smoothly throughout the year, and a number of innovative results have been achieved.

17. Engineering project management

The Engineering Department is responsible for the entire process management of the company's infrastructure project construction, and has formulated and improved the "Engineering Project Bidding Management System", "Engineering Project Supplier Management Regulations", "Engineering Project Material Brand Management Regulations", "Engineering Project Implementation Management Regulations", "Engineering Project Construction Quality Management Regulations", "Engineering Project Cost Management System", "Engineering Project Quantity Measurement and Visa Management System", "Engineering Project Safety Management System", Project management system processes such as the "Project Acceptance Management Regulations", "Project Handover Management System", "Project Final Account Audit Management Regulations", "Project Payment Approval Authority Management Regulations", continue to standardize the terms of engineering "contract model texts".

In 2025, the entire process of the company's major engineering projects, including project approval, construction drawing design and budget preparation, supplier bidding, project quality and progress management, project cost process control, project completion acceptance and final account audit, etc., will be strictly implemented in accordance with the company's system requirements. Project inspections will be strengthened, project approval will be strict, and project quality, progress, cost and safety will be strictly controlled to ensure the realization of the goal of "sunshine projects, quality projects".

18. External guarantees and related transactions

In order to regulate the company's external guarantees and related transactions, the company has formulated the "External Guarantee Management System" and "Related Transaction Management Measures", and the company's external guarantees and related transactions are well controlled.

19. Financial reports

In accordance with the "Accounting Law", "Accounting Standards for Business Enterprises" and other relevant national laws and regulations, the company has formulated the "Regulations on the Management of Financial Accounting Methods", strictly implements the Enterprise Accounting Standards, strengthens basic accounting work, clarifies the processing procedures for accounting vouchers, accounting books and financial accounting reports, and ensures the authenticity and completeness of accounting data.

The company has set up corresponding positions, responsibilities and authorities in terms of accounting, and is equipped with professional accounting personnel with professional capabilities. It has effectively implemented the separation control of incompatible positions and formed a mechanism of mutual restraint and mutual supervision. The company's accounting system can confirm, truly and accurately record all transactions, and fully express and disclose transactions or events in financial reports.

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, and there are no major omissions.

(2) Internal control evaluation work basis and internal control defect identification standards

In accordance with the "Basic Standards for Enterprise Internal Control" and "Enterprise Internal Control Application Guidelines", "Enterprise Internal Control Evaluation Guidelines", Shenzhen Stock Exchange's "Internal Control Guidelines for Listed Companies" jointly issued by the Ministry of Finance, the China Securities Regulatory Commission and other five ministries and commissions, and other relevant regulations, combined with the company's actual operating and management conditions, the company organized and carried out internal control evaluation work, and continued to improve and optimize the company's internal control system to adapt to the changing external environment and internal management requirements.

The company's board of directors distinguishes between financial reporting internal control and non-financial reporting internal control based on the company's internal control standard system's identification requirements for major defects, important defects and general defects, combined with the company's size, industry characteristics, risk preference and risk tolerance and other factors, and determines the specific identification standards for internal control defects applicable to the company. The standards for identifying internal control deficiencies determined by the company are as follows:

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

(1) Quantitative standards for evaluating internal control deficiencies in financial reporting determined by the company

Based on the consolidated statement data, the quantitative standard for determining the importance of misstatements (including omissions) in the company's consolidated statements is as follows:

Project General defects Important defects Major defects

total profit

Potential misstatement Misstatement < 3% of total profit 3% of total profit ≤ Misstatement < 5% of total profit Misstatement ≥ 5% of total profit Total assets

Potential misstatement Misstatement < 0.5% of total assets Total assets 0.5% ≤ Misstatement < 1% of total assets Misstatement ≥ 1% of total assets Operating income Total operating income 0.5% ≤ Misstatement < total operating income Misstatement ≥ total operating income Potential misstatement Misstatement < 0.5% of total operating income

Amount 1% 1%

(2) The qualitative standards for the evaluation of internal control deficiencies in financial reporting determined by the company are as follows:

Major deficiencies: Major irregularities occurred in the company's accounting statements, financial reports and information disclosure; the company's audit committee and internal audit institution failed to effectively perform their supervisory functions; the certified public accountant issued three other opinions on the company's financial statements other than unqualified audit reports.

Important flaws: The company's accounting statements and financial report preparation did not fully comply with corporate accounting standards and disclosure requirements, resulting in important misstatements in the financial statements; significant misstatements in the company's financial reports announced in previous years required retrospective adjustments.

General deficiencies: other internal control deficiencies that do not constitute major deficiencies or important deficiencies.

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

The standards for identifying the company's internal control deficiencies in non-financial reporting are mainly determined based on the severity of the business nature, direct or potential negative impact, scope of impact and other factors. The quantitative standards for the evaluation of internal control deficiencies in non-financial reporting determined by the company are as follows:

Type of defect Amount of direct property loss

Major defect Amount of direct property loss > 3‰ of total assets in consolidated accounting statements

Important defects 1‰ of the total assets in the consolidated financial statements < Amount of direct property losses ≤ 3‰ of the total assets in the consolidated financial statements General defects Amount of direct property losses ≤ 1‰ of the total assets in the consolidated financial statements

The qualitative standards for evaluating the company’s internal control deficiencies over non-financial reporting are as follows:

If the following circumstances occur, the company will be deemed to have major deficiencies in non-financial reporting-related internal controls: (1) The company's business activities seriously violate national laws and regulations;

(2) The decision-making process is unscientific, leading to major decision-making errors and causing significant property losses to the company; (3) A large number of key management personnel or technical talents are lost;

(4) Negative news or reports appear frequently, causing regulatory authorities to pay close attention and cannot be eliminated for a long time. Important defect: A defect that is less serious than a major defect alone or in combination with other defects, but may still cause the company to deviate from its control objectives.

General deficiencies: other internal control deficiencies that do not constitute major deficiencies or important deficiencies.

(3) Identification and rectification of internal control deficiencies

1. Identification and rectification of internal control deficiencies in financial reporting

According to the above-mentioned identification standards of internal control deficiencies in financial reporting, the company did not have any major deficiencies or important deficiencies in internal control over financial reporting during the reporting period.

2. Identification and rectification of internal control deficiencies in non-financial reporting

According to the above-mentioned identification standards of internal control deficiencies in non-financial reporting, no major deficiencies or important deficiencies in the company’s internal control over non-financial reporting were found during the reporting period.

The company adopts a management model of substantial internal control for internal management risks, pays attention to the construction of business processes, effectively prevents risks, and improves business operation efficiency. Through the company's self-evaluation and rectification, as of December 31, 2025, the company's risk management and internal control systems were basically sound, and no defects or abnormal events that had a significant impact on corporate governance, operation management and development were found.

4. Description of other major matters related to internal control

During the reporting period, the company did not have other internal control information that may have a significant impact on investors' understanding of the internal control evaluation report, evaluation of internal control conditions, or investment decisions.

Board of Directors of Zhejiang Jingxin Pharmaceutical Co., Ltd.

April 24, 2026