Jiangsu Lianfa Textile Co., Ltd.
2025 Self-Evaluation Report on Internal Control
To all shareholders of Jiangsu Lianfa Textile 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 Norms 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 Reporting Date").
I. Important Statement
In accordance with the Enterprise Internal Control Norms System, it is the responsibility of the company's Board of Directors to establish, improve, and effectively implement internal control and evaluate its effectiveness, and to disclose the internal control evaluation report truthfully. 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, its directors, and senior management guarantee that the content of this report contains no false records, misleading statements, or significant omissions, and they bear individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report.
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, 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, 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.