To the Shareholders of Zhejiang Youfa High-New Fiber Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (collectively 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
According to the Enterprise Internal Control Norms System, it is the responsibility of the company's board of directors to establish, improve, effectively implement, and evaluate internal controls, and to disclose the internal control evaluation report truthfully. The audit committee supervises the board of directors in establishing and implementing internal controls. The management team is responsible for organizing and leading the daily operations 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 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's content.
The objective of the company's internal control is to reasonably ensure that business management is 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, 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 control based on the results of the internal control evaluation.