ZTE Corporation 2025 Internal Control Evaluation Report
To all shareholders of ZTE Corporation:
In accordance with the requirements of the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, and other internal control regulatory requirements (collectively referred to as the "Enterprise Internal Control Norms System"), combined with ZTE Corporation's (the "Company") internal control system and evaluation methods, and based on daily supervision and special supervision of internal controls, we have evaluated the effectiveness of the Company's internal controls as of December 31, 2025 (the "Evaluation Basis Date").
I. Important Statement
In accordance with the Enterprise Internal Control Norms System, it is the responsibility of the Company's Board of Directors to establish, improve, and effectively implement internal controls and evaluate their effectiveness, and to disclose the internal control evaluation report truthfully. The Audit Committee supervises the establishment and implementation of internal controls by the Board of Directors. Management is responsible for organizing and leading the daily operations of the Company's internal controls.
The Company's Board of Directors, Audit Committee, directors, and senior management guarantee that the content of this report contains no false records, misleading statements, or material omissions, and they shall bear individual and joint legal liability for the truthfulness, accuracy, and completeness of the report's content.
The objective of the Company's internal control is to provide reasonable assurance that business operations are legal and compliant, assets are secure, financial reports and related information are true and complete, and to improve operational efficiency and effectiveness, thereby promoting the achievement of development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving these objectives. Furthermore, changes in circumstances may render internal controls inappropriate, or reduce the degree of adherence to control policies and procedures. Therefore, there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control evaluation.
II. Conclusion of Internal Control Evaluation
Based on the determination of material weaknesses in the Company's financial reporting internal controls, as of the Evaluation Basis Date, there are no material weaknesses in financial reporting internal controls. The Board of Directors believes that the Company has maintained effective financial reporting internal controls in all material aspects in accordance with the requirements of the Enterprise Internal Control Norms System and relevant regulations.
Based on the determination of material weaknesses in the Company's non-financial reporting internal controls, as of the Evaluation Basis Date, the Company has not discovered any material weaknesses in non-financial reporting internal controls.
No factors have occurred between the Evaluation Basis Date and the issuance date of this internal control evaluation report that affect the conclusion of the internal control effectiveness evaluation.
III. Internal Control Evaluation Work