Based on the "Basic Norms for Internal Control of Enterprises" and other relevant regulations, the company (hereinafter referred to as "the Company") has conducted an evaluation of its internal control system and effectiveness as of December 31, 2025.
1. Important Clarification
According to the requirements of the "Basic Norms for Internal Control of Enterprises," the evaluation of internal control effectiveness is essential for the Board of Directors. The Board of Directors is responsible for establishing and implementing the internal control system and ensuring its effectiveness. The Company must ensure that the evaluation report is truthful, accurate, and complete, and that it does not contain any false statements or omissions, and that the report's content is factual, accurate, and comprehensive, bearing legal responsibility.
The objectives of the Company's internal control are to ensure compliance with laws and regulations, safeguard assets, and enhance operational efficiency and effectiveness, thereby promoting the Company's development strategy. Due to the constraints of the existing internal control system, the Company aims to provide reasonable assurance regarding the effectiveness of internal control. Furthermore, due to changes in circumstances, there may be risks associated with the internal control evaluation results.
2. Internal Control Evaluation Conclusion
Based on the Company's financial reports and the recognition of significant deficiencies in the internal control evaluation, it is noted that there are major deficiencies in the internal control system. The Board of Directors believes that the Company has not adequately maintained effective financial reporting in accordance with the requirements for all aspects of internal control.