2025 Annual Internal Control Self-Assessment Report
Beijing Beixin Yuan Software Co., Ltd.
To all shareholders of Beijing Beixin Yuan Software Co., Ltd.:
According to the provisions of 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 Normative System"), combined with the internal control system and evaluation methods of Beijing Beixin Yuan Software Co., Ltd. (hereinafter referred to as "Beixin Yuan," "the Company," or "this Company"), we conducted a self-assessment of the effectiveness of the Company's internal control as of December 31, 2025 (the benchmark date for the internal control evaluation report) based on daily supervision and special supervision of internal control.
Important Statement
According to the provisions of the Enterprise Internal Control Normative System, establishing, improving, and effectively implementing internal control, evaluating its effectiveness, and truthfully disclosing the internal control evaluation report is the responsibility 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 internal control. The Company's Board of Directors, Audit Committee, and directors and senior management ensure that the content of this report does not contain false records, misleading statements, or significant omissions, and bear individual and joint responsibility for the truthfulness, accuracy, and completeness of its content. The goal of the Company's internal control is to reasonably ensure that business management is legal and compliant, assets are secure, financial reporting and related information are true and complete, operational efficiency and effectiveness are improved, and the realization of development strategies is promoted. Due to inherent limitations in internal control, it can only provide reasonable assurance for achieving the above goals. Furthermore, changes in circumstances may lead to internal control becoming inappropriate or a decrease in compliance with control policies and procedures, making it risky to infer the future effectiveness of internal control based on evaluation results.
Internal Control Evaluation Conclusion
According to the identification of significant defects in financial reporting internal control, as of the benchmark date for the internal control evaluation report, there are two significant defects in financial reporting internal control. The Board of Directors believes that the Company has failed to maintain effective financial reporting internal control in all significant aspects in strict accordance with the requirements of the Enterprise Internal Control Normative System and relevant regulations. Based on the identification of significant defects in non-financial reporting internal control, as of the benchmark date for the internal control evaluation report, the Company has identified two significant defects in non-financial reporting internal control. No factors affecting the evaluation conclusion of internal control effectiveness occurred between the benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report.
Internal Control Evaluation Work Situation
(1) Scope of Internal Control Evaluation
The scope of this internal control evaluation mainly includes Beijing Beixin Yuan Software Co., Ltd. and its wholly-owned subsidiaries and holding subsidiaries. The total assets of the units included in the evaluation scope account for 100.00% of the total assets of the Company's consolidated financial statements, and the total operating income accounts for 100.00% of the total operating income of the Company's consolidated financial statements. The business and matters included in the evaluation scope include: organizational structure, corporate governance, development strategy, human resources, information disclosure, corporate culture, related party transactions, fundraising management, fund management, R&D projects, budget management, subsidiary management, etc. The specifics are as follows: