Xingmin Smart Communication (Group) Co., Ltd.
2025 Internal Control Evaluation Report
To all shareholders of Xingmin Smart Communication (Group) Co., Ltd.:
Pursuant to the Basic Standard for Enterprise Internal Control and its supporting guidelines, as well as other internal control regulatory requirements (collectively referred to as the "Enterprise Internal Control Standard System"), and based on the company's internal control system and evaluation methods, we have evaluated the effectiveness of the company's internal control as of December 31, 2025 (the "Internal Control Evaluation Base Date").
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Standard 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 management is responsible for organizing and leading the daily operations of the company's internal control. The company's Board of Directors, its directors, and senior management guarantee that this report contains no false records, misleading statements, or material 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 safe, financial reports and related information are true and complete, and to improve operational efficiency and effectiveness, thereby promoting the achievement of development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving these objectives. Furthermore, changes in circumstances may render internal controls inadequate, or reduce the degree of compliance with control policies and procedures. Therefore, predicting the future effectiveness of internal control based on the results of the internal control evaluation carries certain risks.