Important Statement
According to the provisions of the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (hereinafter referred to as the "Enterprise Internal Control Normative System"), combined with Shenzhen Walden Material Co., Ltd.'s (hereinafter referred to as "the Company") internal control system and evaluation methods, we have evaluated the effectiveness of the Company's internal controls as of December 31, 2025 (the benchmark date for the internal control evaluation report).
The establishment, improvement, and effective implementation of internal controls, the evaluation of their effectiveness, and the truthful disclosure of the internal control evaluation report are the responsibilities of the Company's Board of Directors. The Audit Committee supervises the establishment and implementation of internal controls by the Board. The management is responsible for organizing and leading the daily operation of internal controls. The Company's 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 legal responsibility for the truthfulness, accuracy, and completeness of the report content.
The objective of the Company's internal control is to reasonably ensure that business management is legal and compliant, assets are secure, financial reporting 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 of achieving the above objectives. Additionally, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in financial reporting internal controls, as of the benchmark date of the internal control evaluation report, there are no significant deficiencies in financial reporting internal controls. The Board believes that the Company has maintained effective financial reporting internal controls in all material respects in accordance with the requirements of the Enterprise Internal Control Normative System and related regulations. Based on the identification of significant deficiencies in non-financial reporting internal controls, as of the benchmark date of the internal control evaluation report, the Company has not identified any significant deficiencies in non-financial reporting internal controls. No factors affecting the evaluation conclusion of internal control effectiveness have occurred between the benchmark date of the internal control evaluation report and the issuance date of the internal control evaluation report.
Internal Control Evaluation Work Situation
Basis of Internal Control
During the reporting period, the Company continuously improved and optimized its internal control system in accordance with the provisions of the "Basic Norms for Enterprise Internal Control" issued by relevant national departments and other internal control regulatory requirements, to adapt to the changing external environment and internal management requirements.