Huafu Fashion Co., Ltd. 2025 Internal Control Self-Evaluation Report
To all shareholders of Huafu Fashion 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 in conjunction with the company's internal control system and evaluation methods, based on daily and special supervision of internal controls, we have evaluated the effectiveness of the company's internal controls as of December 31, 2025 (the "Internal Control Evaluation Report Base Date").
I. Important Statement
In accordance with the Enterprise Internal Control Norms System, the establishment, improvement, and effective implementation of internal controls, and the evaluation of their effectiveness, along with the truthful disclosure of the internal control evaluation report, are the responsibilities of the company's Board of Directors. The Audit Committee of the Board of Directors supervises the establishment and implementation of internal controls by the Board. The management is responsible for organizing and leading the daily operation of the company's internal controls. The company's Board of Directors, its directors, and senior management guarantee that the content of this report contains no false records, misleading statements, or significant omissions, and they shall bear individual and joint legal liability 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 operations are legal and compliant, assets are secure, financial reports and related information are true and complete, operational 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 controls inappropriate, or reduce the degree of adherence to control policies and procedures, and there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control evaluation.
II. Internal Control Evaluation Conclusion
Based on the identification of material weaknesses in the company's financial reporting internal controls, as of the Internal Control Evaluation Report Base Date, there are no material weaknesses in financial reporting internal controls. The Board of Directors believes that the company has maintained effective financial reporting internal controls in all material aspects in accordance with the Enterprise Internal Control Norms System and relevant regulatory requirements.
Based on the identification of material weaknesses in the company's non-financial reporting internal controls, as of the Internal Control Evaluation Report Base Date, the company has not found any material weaknesses in non-financial reporting internal controls. No factors have occurred between the Internal Control Evaluation Report Base Date and the issuance date of this report that affect the conclusion on the effectiveness of internal controls.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation