Tianjin Ninehealth Medical Electronics Co., Ltd. 2025 Annual Internal Control Self-Evaluation Report
To all shareholders of Tianjin Ninehealth Medical Electronics 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 combined with Tianjin Ninehealth Medical Electronics Co., Ltd.'s (hereinafter referred to as the "Company") internal control system and evaluation methods, based on daily and special supervision of internal controls, we have evaluated the effectiveness of the Company's internal controls as of December 31, 2025 (the internal control evaluation report base date).
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Norms System, the establishment and effective implementation of internal controls, the evaluation of their effectiveness, and the truthful disclosure in 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 controls by the Board of Directors. Senior management is responsible for organizing and leading the daily operations of the Company's internal controls. The Company's Board of Directors, its directors, and senior management guarantee that this report contains no false records, misleading statements, or major omissions, and they bear individual and joint legal responsibility for the authenticity, 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 safe, 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 effectiveness of future 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 financial reporting internal controls, as of the internal control evaluation report base date, 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 Norms System and relevant regulations.
Based on the determination of material weaknesses in non-financial reporting internal controls, as of the internal control evaluation report base date, the Company has not found any material weaknesses in non-financial reporting internal controls.
No factors have occurred between the internal control evaluation report base date and the date of issuance of the internal control evaluation report that affect the conclusion of the internal control effectiveness evaluation.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation
- Major Units Included in the Evaluation Scope
The Company determines the major units, businesses, and matters included in the evaluation scope and high-risk areas based on a risk-oriented approach. The major units included in the evaluation scope include the parent company and all wholly-owned and controlled subsidiaries. The total assets of the units included in the evaluation scope account for 100% of the total assets of the Company's consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue of the Company's consolidated financial statements.
- Major Businesses and Matters Included in the Evaluation Scope: