Kéhua Data Co., Ltd.
2025 Self-Evaluation Report on Internal Control
To all shareholders of Kehua Data Co., Ltd.:
Based on 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 Norms System"), combined with the company's internal control system and evaluation methods, and on the basis of 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 base date of the internal control evaluation report).
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Norms 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 committee supervises the establishment and implementation of internal control by the board of directors. The management is responsible for organizing and leading the daily operation of the company's internal control. The company's board of directors, supervisors, and senior management guarantee that the content of this report is free from any false records, misleading statements, or major omissions, and they bear individual and joint legal responsibility for the authenticity, accuracy, and completeness of the report.
The objective of the company's internal control is to reasonably ensure the legality and compliance of business management, the safety of assets, and the truthfulness and completeness of financial reports and related information, to improve operational efficiency and effectiveness, and to promote the achievement of development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the achievement of these objectives. Furthermore, changes in circumstances may render internal control inappropriate, or reduce the degree of adherence to control policies and procedures, and there is a certain risk in inferring the effectiveness of future internal control based on the results of the internal control evaluation.
II. Conclusion of Internal Control Evaluation
Based on the determination of major defects in the company's financial reporting internal control, as of the base date of the internal control evaluation report, there are no major defects in financial reporting internal control. The board of directors believes that the company has maintained an 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 major defects in the company's non-financial reporting internal control, as of the base date of the internal control evaluation report, the company has not found any major defects in non-financial reporting internal control.
No factors have occurred between the base date of this internal control evaluation report and the date of issuance of this internal control evaluation report that have affected the evaluation of the effectiveness of internal control.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation
The company determines the main entities, businesses, and matters included in the scope of evaluation, as well as high-risk areas, based on a risk-oriented approach. The main entities included in the scope of evaluation include: the parent company and its wholly-owned subsidiaries, and holding subsidiaries. The total assets of the entities included in the scope of evaluation account for 100% of the total assets of the company's consolidated financial statements, and the total operating income accounts for 100% of the total operating income of the company's consolidated financial statements.
The main businesses and matters included in the scope of evaluation include:
- Control Environment
(1) Governance Structure
In accordance with the "Company Law," "Securities Law," "Articles of Association," and relevant laws and regulations, the company has established a complete and effective corporate governance structure composed of the shareholders' meeting, the board of directors, the management, and the operational team led by the management.