Shenzhen Sunlord Electronics Co., Ltd.
2025 Annual Internal Control Evaluation Report
To all shareholders of Shenzhen Sunlord Electronics Co., Ltd.:
In 2025, the company (hereinafter referred to as "the Company") conducted its internal control evaluation in accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other regulatory requirements for internal control (hereinafter referred to as "the internal control regulatory system"). This evaluation was based on the Company's internal control system and evaluation methods, emphasizing a risk-oriented approach to continuously improve and optimize the internal control system to adapt to the changing external environment and internal management requirements.
This year, through the execution of audit procedures, we evaluated the effectiveness of the Company's internal control as of December 31, 2025 (the benchmark date for the internal control evaluation report). The specific evaluation results are as follows:
1. Important Statements
According to the internal control regulatory system, it is the responsibility of the Company's board of directors to establish, implement, and evaluate the effectiveness of internal controls and to disclose the internal control evaluation report truthfully. The supervisory board supervises the establishment and implementation of internal controls by the board of directors. The management is responsible for organizing and leading the daily operations of internal controls. The Company's board of directors, supervisory board, and directors, supervisors, and senior management ensure that the content of this report does not contain any 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 secure, financial reports and related information are true and complete, operational efficiency and effectiveness are improved, and development strategies are promoted. 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 inappropriate or reduce compliance with control policies and procedures, thus posing certain risks in inferring the future effectiveness of internal controls based on evaluation results.
2. 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 of directors believes that the Company has maintained effective financial reporting internal controls in all material aspects in accordance with the requirements of the internal control regulatory 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.