Internal Control Audit Report
Zhonghui Review [2026] No. 2998
To all shareholders of Sichuan Jiuzhou Electric Co., Ltd.:
In accordance with the "Guidelines for Internal Control Audits" and relevant requirements of the Chinese Certified Public Accountant Practice Standards, we audited the effectiveness of the internal controls over the financial report of Sichuan Jiuzhou Electric Co., Ltd. (hereinafter referred to as "Sichuan Jiuzhou") as of December 31, 2025.
1. Responsibility of the Enterprise for Internal Control
According to the "Basic Norms for Enterprise Internal Control," "Application Guidelines for Enterprise Internal Control," and "Evaluation Guidelines for Enterprise Internal Control," it is the responsibility of the board of directors of Sichuan Jiuzhou to establish, implement, and evaluate the effectiveness of internal controls.
2. Responsibility of the Certified Public Accountant
Our responsibility is to express an audit opinion on the effectiveness of internal controls over financial reporting based on the audit work performed and to disclose any significant deficiencies in non-financial reporting internal controls that we become aware of.
3. Inherent Limitations of Internal Control
Internal control has inherent limitations and may not prevent or detect misstatements. Additionally, changes in circumstances may render internal controls inadequate or reduce compliance with control policies and procedures. Therefore, inferring the future effectiveness of internal controls based on audit results carries certain risks.
4. Audit Opinion on Internal Controls over Financial Reporting
We believe that Sichuan Jiuzhou maintained effective internal controls over financial reporting in all material respects as of December 31, 2025, in accordance with the "Basic Norms for Enterprise Internal Control" and relevant regulations.
Sichuan Jiuzhou Electric Co., Ltd. Internal Control Evaluation Report
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines jointly issued by the Ministry of Finance, the China Securities Regulatory Commission, and other departments (hereinafter referred to as the "Enterprise Internal Control System"), combined with the company's internal control system and evaluation methods, we evaluated the reasonableness, completeness, and effectiveness of the internal controls established by the company as of December 31, 2025 (the reference date for the internal control evaluation report). We also identified any deficiencies in the design and operation of internal controls.
1. Important Statement
Internal control is a process implemented by the board of directors, audit committee, management, and all employees aimed at achieving control objectives. Under the supervision of the corporate governance structure, it is the responsibility of the board of directors to design, implement, and maintain effective internal controls, evaluate their effectiveness, and disclose the internal control evaluation report truthfully. The audit committee supervises the establishment and implementation of internal controls by the board of directors. The management is responsible for organizing and leading the daily operation of internal controls. The board of directors, audit committee, and directors and senior management ensure that the content of this report does not contain any false records, misleading statements, or significant omissions, and bear individual and joint responsibility for the truthfulness, accuracy, and completeness of the report. The goal of establishing and implementing internal controls is to reasonably ensure that the company's operations are legal and compliant, assets are secure, financial reports and related information are true and complete, operational efficiency and effectiveness are improved, and the company achieves its development strategy. Due to the inherent limitations of internal controls, they can only provide reasonable assurance for achieving the above objectives. Furthermore, changes in circumstances may render internal controls inadequate or reduce compliance with control policies or procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.