Shenzhen Inovance Electric Co., Ltd.
2025 Annual Internal Control Self-Evaluation Report
To All Shareholders of Shenzhen Inovance Electric 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 Shenzhen Inovance Electric Co., Ltd.'s (hereinafter referred to as the "Company") internal control system and evaluation methods, 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 "Internal Control Evaluation Report Base Date").
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Norms System, the establishment, improvement, and effective implementation of internal control, the evaluation of its 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 Board of Directors in establishing and implementing internal control. The management team is responsible for organizing and leading the daily operations of the Company's internal control. The Company's Board of Directors, Audit Committee, directors, and senior management guarantee that 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, operating 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, due to changes in circumstances, internal control may become inappropriate, or the degree of compliance with control policies and procedures may decrease. Therefore, there is a certain risk in inferring the future effectiveness of internal control based on the results of the internal control evaluation.
II. Internal Control Evaluation Conclusion
Based on the determination of material weaknesses in the Company's financial reporting internal control, as of the Internal Control Evaluation Report Base Date, 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 Norms System and relevant regulations.
Based on the determination of material weaknesses in the Company's non-financial reporting internal control, as of the Internal Control Evaluation Report Base Date, the Company has not discovered any material weaknesses in non-financial reporting internal control.