Nanchang Mining Machinery Group Co., Ltd.
2025 Internal Control Evaluation Report
To all shareholders of Nanchang Mining Machinery Group Co., Ltd.:
Pursuant to the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (collectively referred to as the "Enterprise Internal Control Norms System"), and based on the company's internal control system and evaluation methods, as well as daily and special supervision of internal control, we have evaluated the effectiveness of the company's internal control as of December 31, 2025 (the "Evaluation 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 control, evaluate its effectiveness, and disclose the internal control evaluation report truthfully. The Audit Committee supervises the board of directors in establishing and implementing internal control. The management is responsible for organizing and leading the daily operations of the company's internal control. 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 significant omissions, and they bear individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report's content.
The objective of the company's internal control 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 control, it can only provide reasonable assurance for achieving these objectives. Furthermore, changes in circumstances may render internal control inappropriate, or reduce the degree of compliance with control policies and procedures, thus carrying a certain risk in inferring the future effectiveness of internal control based on the results of the internal control evaluation.