China Construction Western Construction Co., Ltd. 2025 Internal Control Evaluation Report
To all shareholders of China Construction Western Construction Co., Ltd.:
In accordance with the requirements of the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, and other internal control regulatory requirements (hereinafter referred to as the "Enterprise Internal Control Normative System"), combined with the internal control system and evaluation methods of China Construction Western Construction Co., Ltd. (hereinafter referred to as the "Company"), based on daily supervision and special supervision of internal control, we have evaluated the effectiveness of the Company's internal control as of December 31, 2025 (the evaluation report benchmark date).
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Normative System, establishing and effectively implementing internal control, evaluating its effectiveness, and truthfully disclosing the internal control evaluation report are the responsibilities of the Company's Board of Directors. The Audit and Risk Committee supervises the establishment and implementation of internal control by the Board of Directors. The management is responsible for organizing and leading the daily operations of the Company's internal control. The Company's Board of Directors, Audit and Risk Committee, directors, and senior management guarantee that the content of this report contains no false records, misleading statements, or significant omissions, and assume individual and joint legal liability for the authenticity, 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 promoted. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving the above objectives. Furthermore, changes in circumstances may render internal controls inappropriate or reduce the degree of compliance with control policies and procedures, and there is a certain risk in inferring the effectiveness of future 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 control, as of the benchmark date of this internal control evaluation report, there are no material weaknesses in financial reporting internal control. The Board of Directors believes that the Company has maintained effective financial reporting internal control in all material aspects in accordance with the requirements of the Enterprise Internal Control Normative System and relevant regulations.
Based on the identification of material weaknesses in the Company's non-financial reporting internal control, as of the benchmark date of this internal control evaluation report, the Company has not found any material weaknesses in non-financial reporting internal control.
No factors have occurred between the benchmark date of this internal control evaluation report and the issuance date of this internal control evaluation report that affect the conclusion of the internal control effectiveness evaluation.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation
The Company determines the main entities, businesses, and matters included in the evaluation scope, as well as high-risk areas, based on a risk-oriented approach.
The main entities included in the evaluation scope are the parent company and all subsidiaries within the scope of the Company's consolidated financial statements for the year 2025. The total assets of the entities included in the evaluation scope account for 100.00% of the total assets of the Company's consolidated financial statements, and the total operating income accounts for 100.00% of the total operating income of the Company's consolidated financial statements.