Chuyi Zhangyuan Tungsten Industry Co., Ltd.
2025 Internal Control Self-Evaluation Report
To all shareholders of Chuyi Zhangyuan Tungsten Industry 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 "Enterprise Internal Control Normative System"), and combined with Chuyi Zhangyuan Tungsten Industry Co., Ltd.'s (hereinafter referred to as the "Company") 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 base date of the internal control evaluation report).
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Normative System, establishing and improving internal controls, evaluating their 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 controls by the 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, Audit Committee, directors, and senior management guarantee that the content of this report contains no false records, misleading statements, or major omissions, and shall bear joint and several legal liability for the authenticity, 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, and to improve operational efficiency and effectiveness, thereby promoting 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. Furthermore, due to changes in circumstances, internal controls may become inappropriate, or the degree of compliance with control policies and procedures may decrease. Therefore, 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 determination of material weaknesses in the Company's financial reporting internal controls, as of the base date of the internal control evaluation report, there are no material weaknesses in financial reporting internal controls. The Board of Directors believes that the Company has maintained effective financial reporting internal controls in all material aspects in accordance with the requirements of the Enterprise Internal Control Normative System and relevant regulations.
Based on the determination of material weaknesses in the Company's non-financial reporting internal controls, as of the base date of the internal control evaluation report, the Company has not found any material weaknesses in non-financial reporting internal controls.
From the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report, no factors affecting the effectiveness of internal controls have occurred.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation