Zhuhai Gree Electric Appliances, Inc.
According to the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (hereinafter referred to as the "Internal Control Norms System"), and in conjunction with Zhuhai Gree Electric Appliances, Inc.'s (hereinafter referred to as the "Company") internal control system and evaluation methods, 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 Date of the Internal Control Evaluation Report").
I. Important Statement
In accordance with the requirements of the Internal Control Norms System, establishing and effectively implementing internal controls, evaluating their effectiveness, and truthfully disclosing the internal control evaluation report are the responsibilities of the Company's Board of Directors. The Company's Board of Directors is responsible for the formulation and effective implementation of the Company's internal control system, and the management is responsible for organizing and leading the daily operation of the Company's internal controls. The Company's Board of Directors, the Audit Committee, and the directors and senior management guarantee that the content of this report is free from any false records, misleading statements, or significant omissions, and shall bear joint and several legal liability for the authenticity, accuracy, and completeness of the report.
The objective of the Company's internal controls is to reasonably ensure that business management is legal and compliant, assets are safe, financial reports and related information are true and complete, operating efficiency and effectiveness are improved, and development strategies are achieved. Due to the inherent limitations of internal controls, they can only provide reasonable assurance for the achievement of these objectives. In addition, due to changes in circumstances that may render internal controls inappropriate, or reduce the degree of compliance with control policies and procedures, 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 identification of material weaknesses in the Company's financial reporting internal controls, as of the Evaluation Date of the Internal Control Evaluation Report, the Company has maintained effective financial reporting internal controls in all material aspects in accordance with the requirements of the Internal Control Norms System and relevant regulations, and there are no material weaknesses in financial reporting internal controls.