Northco: Evaluation report on the accounting firm’s performance of duties in 2025
Northco (Beijing) Pharmaceutical Technology Co., Ltd.
Evaluation report on the accounting firm’s performance of duties in 2025
In accordance with relevant regulations such as the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Code of Governance for Listed Companies, the Shenzhen Stock Exchange's Self-Regulatory Supervision Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies, and the Articles of Association of Northrop (Beijing) Pharmaceutical Technology Co., Ltd. (hereinafter referred to as the "Company"), the company evaluated the performance of the audit work of Grant Thornton Accounting Firm (Special General Partnership) (hereinafter referred to as "Grant Thornton Accounting Firm" or "Grant Thornton") in 2025. The specific situation is as follows:
1. Basic situation of accounting firms in 2025 annual audit
(1) Basic information of accounting firms
Grant Thornton Certified Public Accountants (Special General Partnership) was formerly the Beijing Accounting Firm established in 1981 by the Beijing Municipal Finance Bureau. In June 1998, it was decoupled and restructured and merged with the Kyoto Accounting Firm. In 2011, it was converted into a special general partnership with the approval of the Beijing Municipal Finance Bureau. In 2012, it was renamed Grant Thornton Certified Public Accountants (Special General Partnership). Its registered address is on the 5th floor of Seth Plaza, No. 22 Jianguomenwai Street, Chaoyang District, Beijing. Grant Thornton has obtained a practice certificate issued by the Beijing Municipal Finance Bureau (certificate serial number: No. 0014469). It is one of the first accounting firms in China to obtain securities and futures-related business qualifications, the first batch of accounting firms to be allowed to engage in the audit business of extra-large state-owned enterprises, and the first batch of accounting firms to obtain financial audit qualifications. It is also one of the first batch of accounting firms to obtain the qualifications of mainland firms to engage in H-share enterprise audit business issued by the Ministry of Finance and the China Securities Regulatory Commission, and is registered with the PCAOB in the United States. Grant Thornton is the Chinese member firm of Grant Thornton.
As of the end of 2025, Grant Thornton has nearly 6,000 employees, including 244 partners, 1,361 certified public accountants, and more than 400 certified public accountants who have signed securities service business audit reports.
(2) Procedures for appointing an accounting firm
The ninth meeting of the company's fifth board of directors and the 2024 annual general meeting of shareholders reviewed and approved the "Proposal on Renewal of the Company's Audit Institution for 2025" and agreed to continue to appoint Grant Thornton Accounting Firm as the company's audit institution for 2025. The appointment period will be one year from the date of review and approval by the company's shareholders' meeting. The specific audit fees will be determined by the company's board of directors upon the approval of the shareholders' meeting by the chairman of the board of directors based on the specific workload of the 2025 audit and market price levels.
2. 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, Grant Thornton Accounting Firm audited the company's 2025 financial report and the effectiveness of internal controls on December 31, 2025. At the same time, it verified and issued a special report on the storage and actual use of the company's raised funds, the occupation of funds by the controlling shareholder and other related parties, and other businesses.
After auditing, Grant Thornton believes that the company's financial statements have been prepared in accordance with the provisions of the Accounting Standards for Business Enterprises in all material aspects, and fairly reflect the company's consolidated and parent company's financial status as of December 31, 2025, as well as the consolidated and parent company's operating results and cash flows in 2025; the company has maintained effective internal control over financial reporting in all material aspects on December 31, 2025 in accordance with the "Basic Standards for Enterprise Internal Control" and relevant regulations. Grant Thornton Accounting Firm issued a standard unqualified audit report and an internal control audit report.
In the process of performing audit work, Grant Thornton Accounting Firm fully communicated with the company's management and governance on the independence of the accounting firm and relevant auditors, the composition of the audit team, audit plans, risk judgments, risk and fraud testing and evaluation methods, annual audit priorities, audit adjustments, preliminary opinions, etc.
3. Overall evaluation
After evaluation, the company believes that: Grant Thornton Accounting Firm insisted on conducting independent audits in a fair and objective manner during the audit of the company's annual report, demonstrated good professional ethics and business quality, and completed the audit related work of the company's 2025 annual report on time. The audit behavior was standardized and orderly, and the report issued was objective, complete, clear and timely.
Northco (Beijing) Pharmaceutical Technology Co., Ltd.
March 27, 2026