Foshan Energy Group Co., Ltd. 2025 Annual Internal Control Evaluation Report
To all shareholders of Foshan Energy Group 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 the company's 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 Norms System, it is the responsibility of the company's board of directors to establish, improve, and effectively implement internal controls, evaluate their effectiveness, and disclose the internal control evaluation report truthfully. The Audit Committee of the Board of Directors 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 directors, supervisors, and senior management guarantee that the content of this report does not contain any false records, misleading statements, or major 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 ensure the legality and compliance of operations and management, controllable risks, and the safety of assets, as well as the completeness and accuracy of financial information, to improve operational efficiency and effectiveness, and to support 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 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. Internal Control Evaluation Conclusion
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 Norms 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.
No factors have occurred between the base date of the internal control evaluation report 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
(1) Scope of Internal Control Evaluation