Kangli Elevator Co., Ltd.
2025 Annual Report on Self-Evaluation of Internal Control
To the Shareholders of Kangli Elevator Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (hereinafter referred to as the "Internal Control Norms System"), and combined with Kangli Elevator Co., Ltd.'s (hereinafter referred to as the "Company" or "this Company") internal control system and evaluation methods, based on daily 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 benchmark date).
I. Important Statement
In accordance with the requirements of the 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 of the Board of Directors 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, Audit Committee, directors, and senior management guarantee that the content of this report is free from any false records, misleading statements, or material omissions, and shall bear individual and joint legal liability for the truthfulness, accuracy, and completeness of the report.
The objective of the Company's internal control is to reasonably guarantee the legality and compliance of business operations, 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 realization of development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the achievement of these objectives. In addition, as changes in circumstances may lead to internal control becoming inappropriate, or reduce the degree of compliance with control policies and procedures, there is a certain risk in inferring the future effectiveness of internal control 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 control, there were no material weaknesses in financial reporting internal control as of the benchmark date of the internal control evaluation report. The Board of Directors believes that the Company has maintained effective financial reporting internal control in all material respects in accordance with the requirements of the Internal Control Norms System and relevant regulations.
Based on the identification of material weaknesses in the Company's non-financial reporting internal control, there were no material weaknesses in non-financial reporting internal control as of the benchmark date of the internal control evaluation report.
From the benchmark date of the internal control evaluation report to the issuance date of the internal control evaluation report, no factors affecting the effectiveness of internal control have occurred.
III. Internal Control Evaluation Work
The Audit Committee of the Board of Directors is responsible for leading the Company's internal control evaluation work. The Company's internal audit department is responsible for the specific organization and implementation of the internal control evaluation, and for evaluating high-risk areas and units included in the evaluation scope.
During the evaluation process, the internal audit department promptly reported the progress of the evaluation work to the Audit Committee. The Audit Committee, based on the internal audit report and relevant materials submitted by the internal audit department, issued the 2025 Internal Control Evaluation Report regarding the establishment and implementation of the Company's internal control system for financial reporting and information disclosure, and submitted it to the Board of Directors for review. The Company's Internal Control Evaluation Report, after being reviewed and approved by the Board of Directors meeting, will be disclosed to the public.