China Merchants Securities Co., Ltd.
Regarding Guangdong Jianlang Hardware Products Co., Ltd.'s 2025 Internal Control Evaluation Report Audit Opinion
China Merchants Securities Co., Ltd. (hereinafter referred to as "China Merchants Securities" or "Sponsor") is the sponsor for Guangdong Jianlang Hardware Products Co., Ltd. (hereinafter referred to as "Jianlang Hardware" or "the Company") for its private placement of shares. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "Shenzhen Stock Exchange Stock Listing Rules," the "Shenzhen Stock Exchange Main Board Listed Company Self-Regulatory Guidelines No. 1 - Normative Operation of Main Board Listed Companies," and the "Basic Norms for Enterprise Internal Control," among other regulations, we have conducted a prudent review of the "Guangdong Jianlang Hardware Products Co., Ltd. 2025 Internal Control Evaluation Report" (hereinafter referred to as the "Internal Control Evaluation Report"). The audit opinion is as follows:
I. Important Statement
In accordance with the requirements of the enterprise internal control normative 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. The audit committee 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, audit committee, directors, and senior management guarantee that the content of this report is free from any false records, misleading statements, or significant omissions, and they shall 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 the legality and compliance of business management, the safety of assets, and the truthfulness and completeness of financial reports and related information, thereby improving operational efficiency and effectiveness and promoting the achievement 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 control 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 control based on the results of the internal control evaluation.
II. Conclusion of Internal Control Evaluation
Based on the identification of major deficiencies in the company's financial reporting internal control, as of the baseline date of the internal control evaluation report, there are no major deficiencies 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 enterprise internal control normative system and relevant regulations.
Based on the identification of major deficiencies in the company's non-financial reporting internal control, as of the baseline date of the internal control evaluation report, the company has not found any major deficiencies in non-financial reporting internal control.
No factors have occurred between the baseline date of the internal control evaluation report and the issuance date 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