Internal Control Audit Report Doc. No. (Audit) [26] S00365
To All Shareholders of Shenzhen New Nanshan Holding (Group) Co., Ltd.:
In accordance with the requirements of the "Guidelines for Auditing Internal Control" and the professional standards for Chinese Certified Public Accountants, we have audited the effectiveness of the internal financial reporting controls of Shenzhen New Nanshan Holding (Group) Co., Ltd. (hereinafter referred to as "Nanshan Holdings") as of December 31, 2025.
I. Responsibility for Internal Control
In accordance with the "Basic Norms for Enterprise Internal Control," "Guidelines for Application of Enterprise Internal Control," and "Guidelines for Evaluation of Enterprise Internal Control," it is the responsibility of the Board of Directors of Nanshan Holdings to establish, improve, and effectively implement internal control, and to evaluate its effectiveness.
II. Responsibility of the Certified Public Accountant
Our responsibility is to express an audit opinion on the effectiveness of internal financial reporting controls based on the implementation of audit work, and to disclose any significant deficiencies in internal non-financial reporting controls that are noted.
III. Inherent Limitations of Internal Control
Internal control has inherent limitations, and there is a possibility that misstatements cannot be prevented or detected. Furthermore, due to changes in circumstances, internal control may become inappropriate, or the degree of compliance with control policies and procedures may decrease. There is a certain risk in inferring the future effectiveness of internal control based on the results of the internal control audit.