Internal Control Audit Report
To: All shareholders of Shenzhen Steel New Materials Co., Ltd. (hereinafter referred to as "ST Jinglan"):
According to the "Guidelines for Internal Control Audits" and relevant requirements from the Chinese Institute of Certified Public Accountants, we have conducted an internal control audit for Shenzhen Steel New Materials Co., Ltd. (hereinafter referred to as "ST Jinglan") as of December 31, 2025.
1. Responsibilities of the Company for Internal Control
According to the "Basic Norms for Internal Control" and "Guidelines for the Application of Internal Control," the company is responsible for establishing and effectively implementing internal controls, and ensuring that the internal control system is effective.
2. Responsibilities of the Accounting Firm
Our responsibility is to conduct the audit based on the work performed, to express an opinion on the effectiveness of the internal control over financial reporting.
3. Limitations of Internal Control
Internal controls have inherent limitations, which may not prevent or detect all possible errors. Additionally, due to changes in the operating environment, the effectiveness of internal controls may vary.
4. Recommendations on Internal Control Audit
We believe that ST Jinglan should strengthen its internal control system as of December 31, 2025, in accordance with the "Basic Norms for Internal Control" and related guidelines to ensure the effectiveness of its internal controls.