Enhua Pharmaceutical: 2025 Duty Performance Report of the Audit Committee of the Board of Directors

Jiangsu Enhua Pharmaceutical Co., Ltd.

2025 Duty Performance Report of the Audit Committee of the Board of Directors

In accordance with relevant laws and regulations such as the "Company Law", "Securities Law", "Shenzhen Stock Exchange Stock Listing Rules", "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation of Main Board Listed Companies" and the "Company Articles" and "Implementation Rules of the Audit Committee of the Board of Directors", the Audit Committee of the Board of Directors of Jiangsu Enhua Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") performs its duties diligently and conscientiously. The work situation in 2025 is now reported as follows:

1. Basic information of the audit committee

The Audit Committee of the company's board of directors consists of three independent directors, Mr. Chen Guoxiang, Mr. Yin Xiaoxing and Ms. Li Yulan. The chairman (convener) is Mr. Chen Guoxiang, an independent director with professional accounting qualifications, which complies with regulatory requirements and relevant regulations.

2. Audit Committee Meeting Convening Situation

In 2025, the Audit Committee held a total of 6 meetings, as follows:

On March 16, 2025, the 14th meeting of the Audit Committee of the Sixth Board of Directors reviewed and approved the "Company's 2024 Annual Report and Summary", "2024 Financial Final Accounts Report", "Proposal on Renewal of the Accounting Firm", "Proposal on Changes in Accounting Policies", "The Company's 2024 Annual Report" "Internal Control Self-Evaluation Report", "Special Report on the Occupation of Funds by Related Parties and External Guarantees", "Proposal on the Evaluation Report on the Accounting Firm's Duty Performance in 2024", "Proposal on the Audit Committee's Supervision Report on the Accounting Firm's Duty Performance in 2024" and other proposals.

On April 7, 2025, the 15th meeting of the Audit Committee of the sixth board of directors reviewed and approved the "First Quarter Report of 2025", "Internal Audit Department's Work Summary of the First Quarter of 2025 and Second Quarter Work Plan" and other proposals.

On May 7, 2025, the first meeting of the Audit Committee of the seventh board of directors reviewed and approved the "Proposal on the Re-appointment of the Company's Financial Director" and the "Proposal on the Re-appointment of the Head of the Company's Internal Audit Department".

On July 18, 2025, the second meeting of the Audit Committee of the seventh board of directors reviewed and approved the "Company's 2025 Semi-annual Financial Report", "Internal Audit Department's Second Quarter Work Summary and Third Quarter Work Plan for 2025" and other proposals.

On October 13, 2025, the third meeting of the Audit Committee of the seventh board of directors reviewed and approved the "Third Quarter Report of 2025", "Internal Audit Department's Work Summary of the Third Quarter of 2025 and Fourth Quarter Work Plan" and other proposals.

On December 31, 2025, the fourth meeting of the Audit Committee of the seventh board of directors reviewed and approved the "2025 Internal Audit Work Summary and 2026 Internal Audit Work Plan".

3. Main work of the Audit Committee

(1) Review of financial information and disclosure

The Audit Committee comprehensively reviews the financial information in the financial accounting reports and periodic reports. Listen carefully to the company's detailed analysis of annual and quarterly accounting reports, focusing on changes in key indicators such as production, sales and inventory, profit composition, raw material supply, period expenses, cash flow, etc.; conduct inquiries and verifications on key matters that may affect the accuracy of financial information, and strictly implement accounting standards and relevant financial management regulations. The Audit Committee carefully reviewed the company's 2024 annual report, 2025 first quarter report, half-year report and third quarter report, and believed that the company's regular reports truly, accurately and completely reflected the company's financial status and operating results during the reporting period, and there were no frauds, malpractices or major misstatements related to financial reports.

(2) Supervise and evaluate internal and external audit work

1. Supervise the performance of duties by accounting firms. The audit committee focuses on supervising the independence and professionalism of the annual audit accounting firm. During the audit of the 2024 annual report, the Audit Committee requires the accounting firm to carry out audit work in accordance with the overall audit work plan and report the audit progress in a timely manner. In March 2025, the Audit Committee communicated with the audit accountants and project managers on the implementation of the audit plan for the 2024 annual report, audit concerns and solutions, and carefully listened to the accounting firm's overall situation of the 2024 annual audit report. The Audit Committee believes that the audit report issued by the accounting firm truly and objectively reflects the company's actual operating management and financial situation. It has not found that the accountants involved in the audit have violated the provisions of the independent auditing standards. The audit procedures are standardized and the audit report issued can truly and accurately reflect the company's financial status as of December 31, 2024, and its operating results and cash flow in 2024.

2. Re-appoint the accounting firm. The Audit Committee reviewed the professional qualifications, business capabilities, independence and investor protection capabilities of BDO and believed that BDO has extensive experience in auditing listed companies, adheres to the principle of independent auditing in its practice, and has effectively performed its duties as an audit institution. The audit report issued for the company objectively, fairly and fairly reflects the company's financial status. and operating results, has provided audit services to the company for 18 consecutive years. During the 2024 annual review process, the annual review certified public accountants strictly practiced in accordance with relevant laws and regulations, paid attention to understanding the company's operating conditions, financial management systems and related internal control systems, communicated with the audit committee of the board of directors, independent directors, and company senior managers in a timely manner, and successfully completed the audit work of the 2024 annual report. Due to the good cooperation between the two parties, in order to maintain the continuity of the company's audit work, it was agreed to renew the appointment of Shu Lun Pan Certified Public Accountants as the company's audit agency in 2025.

3. Supervise and evaluate internal audit work. At the end of 2025, the board of directors revised and improved the "Internal Audit System" to promote further standardization of internal audit work. The Audit Committee guides the effective operation of the internal audit department in accordance with the "Internal Audit System", strictly implements the 2025 internal audit plan, urges the internal audit to quickly adapt to the governance changes that abolished the Board of Supervisors and strengthened the work responsibilities of the Audit Committee, tracks the progress and quality of the internal audit, and listens to the internal audit department every quarter The department's "Internal Audit Work Report" is listened to every half year by the internal audit department's "Inspection Report on the Implementation of Major Events and Large Fund Transactions in Half a Year" to keep abreast of work trends and provide guidance on internal audit work arrangements, review focus, and working methods to promote the improvement of the quality and efficiency of internal audit work.

4. Coordinate and communicate audit matters. The convener of the Audit Committee is responsible for convening the annual audit communication meeting. Before the accounting firm comes to carry out the audit work, he fully communicates with the firm in advance on matters related to the company's annual audit and clarifies the audit focus and requirements; he will subsequently listen to the company's annual operating status report, the accounting firm's work plan, implementation status and audit opinions, and actively coordinate the management, internal audit department and relevant departments to communicate with the external audit, improve audit efficiency, and promote the smooth and efficient implementation of the annual audit work.

(3) Evaluating internal control work

1. Improve the internal control evaluation system. The Audit Committee guided the revision of a series of internal control systems, reorganized and comprehensively revised them from the aspects of internal control content, main control activities, inspections and disclosures, further improved the company's internal control system, continued to strengthen the company's internal control, and clarified the purpose, basis, organizational guarantee, work scope and key work steps of the internal control evaluation, providing clear guidance for the orderly implementation of the internal control evaluation work in 2025.

2. Supervise the implementation of the internal control system. The Audit Committee focuses on reviewing the company's important risk control policies, internal control status and operating conditions, guiding the company's internal control management department to continuously improve the internal control operating mechanism, and inspect and evaluate the implementation of the internal control system. The Audit Committee reviewed the company's "2024 Internal Control Evaluation Report" and believed that the company has established a complete corporate governance structure and governance system in accordance with the Company Law, Securities Law and other laws and regulations as well as the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange. The internal control system is sound and operates effectively. It has not found that the actual operation of the company's internal control does not meet the requirements of listed company governance standards.

(4) Exercising the powers of the board of supervisors stipulated in the Company Law

After the company abolished the board of supervisors, the audit committee strictly followed the provisions of the "Company Law" and the "Articles of Association", exercised the powers of the board of supervisors stipulated in the "Company Law", strictly performed the supervisors' right to question and make suggestions, and the board of supervisors' rights to investigate, review, supervise, etc., continue to promote the company's standardized operations, and safeguard the legitimate rights and interests of the company and all shareholders, especially small and medium-sized shareholders.

4. Overall evaluation

In 2025, the Audit Committee will abide by the principles of independence, fairness and objectivity, conscientiously perform its duties, give full play to the role of review and supervision, supervise the effective performance of the accounting firms and internal audit institutions, actively assume the supervisory responsibilities of the original Board of Supervisors, promote the continuous standardization of internal control, and effectively safeguard the legitimate rights and interests of the company and all shareholders.

In 2026, the Audit Committee will combine regulatory requirements with the company's actual conditions, strengthen internal and external audit collaboration, and improve supervision effectiveness; focus on key risk areas, guide the improvement of the internal control system, optimize the internal control process, enhance risk warning and response capabilities, and continue to improve corporate governance levels.

Audit Committee of the Board of Directors of Jiangsu Enhua Pharmaceutical Co., Ltd.

April 17, 2026