Zhejiang Yasha Decoration Co., Ltd.
2025 Annual Internal Control Self-Evaluation Report
To all shareholders of Zhejiang Yasha Decoration Co., Ltd.:
Pursuant to the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control requirements (hereinafter referred to as the "Enterprise Internal Control Norms System"), and in conjunction with Zhejiang Yasha Decoration Co., Ltd. (hereinafter referred to as the "Company" or "This Company") internal control system and evaluation methods, the Company's Board of Directors, based on daily and special supervision of internal control, has evaluated the effectiveness of 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 improving internal control, evaluating its effectiveness, and truthfully disclosing the internal control evaluation report are the responsibilities of the Company's Board of Directors. Management is responsible for organizing and leading the daily operation of the Company's internal control. The Company's Board of Directors, its directors, and senior management guarantee that the content of this report is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
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, operational 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, 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 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 base date of the internal control evaluation report, 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 base date of the internal control evaluation report, the Company has not found any material weaknesses in non-financial reporting internal control.
From the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report, no factors have occurred that affect the effectiveness of internal control evaluation.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation
- The Company determines the main entities, businesses, and matters within the scope of evaluation, as well as high-risk areas, based on a risk-oriented principle.
The main entities included in the evaluation scope are: Zhejiang Yasha Decoration Co., Ltd., Zhejiang Yasha Curtain Wall Co., Ltd., Zhejiang Yasha Industrial Park Development Co., Ltd., Shanghai Blue Sky Decoration Engineering Co., Ltd., Xiamen Wansheng Intelligent Technology Co., Ltd., and other companies.
The total assets of the entities included in the evaluation scope account for 100% of the Company's total assets in the consolidated financial statements, and the total operating income accounts for 100% of the Company's total operating income in the consolidated financial statements.
- The main businesses and matters included in the evaluation scope are: corporate governance structure, internal supervision, human resources, corporate culture, social responsibility, information systems and communication, sales and collection business, procurement and payment business, fixed asset management, guarantee business, investment business, financial management, related party transaction management, management of raised funds, information disclosure, etc.