Tianyu Digital Technology Group Co., Ltd. 2025 Internal Control Self-Evaluation Report
To all shareholders of Tianyu Digital Technology Group Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines issued by the Ministry of Finance, the China Securities Regulatory Commission, and other departments, as well as other internal control regulatory requirements (hereinafter referred to as the "Internal Control System"), and combined with the company's internal control system and evaluation methods, based on daily supervision and special supervision of internal controls, we have evaluated the effectiveness of the company's internal controls as of December 31, 2025 (the benchmark date for the internal control evaluation report).
I. Important Statement
In accordance with the requirements of the Internal Control System, establishing and effectively implementing internal controls, evaluating their effectiveness, and truthfully disclosing the internal control evaluation report are the responsibilities of the company's board of directors. The management is responsible for organizing and leading the daily operation of the company's internal controls. The company's board of directors, directors, and senior management guarantee that the content of this report is free from any false records, misleading statements, or significant omissions, and they shall bear 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 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 that may render internal controls inappropriate, or a reduced degree of adherence to control policies and procedures, there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control evaluation.
II. Conclusion of Internal Control Evaluation
Based on the identification of material weaknesses in the company's financial reporting internal controls, as of the benchmark date of the internal control evaluation report, there were no material weaknesses in financial reporting internal controls. The board of directors believes that the company has, in all material respects, maintained effective internal controls over financial reporting in accordance with the requirements of the Internal Control System and relevant regulations.
Based on the identification of material weaknesses in the company's non-financial reporting internal controls, as of the benchmark date of the internal control evaluation report, the company has not found any material weaknesses in non-financial reporting internal controls.
No factors have occurred between the benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report that have affected 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 and high-risk areas based on a risk-oriented approach.
The main entities included in the evaluation scope are: Tianyu Digital Technology Group Co., Ltd. and its subsidiaries. The total assets of the entities included in the evaluation scope account for 100% of the company's consolidated financial statement assets, and the total operating income accounts for 100% of the company's consolidated financial statement operating income.
The main businesses and matters included in the evaluation scope are: company governance, fund management, subsidiary management, procurement and payment, sales and collection, research and development, operations, investment, financing, guarantees, assets, compensation, taxation, information disclosure, financial reporting and information systems, and supervision.
Key high-risk areas include: