2025 Annual Internal Control Evaluation Report
Houpu Clean Energy Group Co., Ltd.
To all shareholders of Houpu Clean Energy Group Co., Ltd.:
In accordance with the provisions of the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as the "Shenzhen Stock Exchange GEM Listing Rules" and 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 Houpu Clean Energy Group Co., Ltd. (hereinafter referred to as the "Company"), we continuously improve and optimize the internal control system based on daily supervision and special supervision, adhering to a risk-oriented principle to adapt to the changing external environment and internal management requirements.
This year, through the execution of internal audit procedures and internal control evaluation procedures, we evaluated the effectiveness of the Company's internal controls as of December 31, 2025 (the baseline date of the internal control evaluation report). The specific evaluation results are as follows:
I. Important Statement
According to the provisions of the Enterprise Internal Control Normative System, establishing, improving, and effectively implementing internal controls, evaluating their effectiveness, and truthfully disclosing the internal control evaluation report is the responsibility of the Company's board of directors. The board's audit committee is responsible for supervising the effective implementation of internal controls and self-evaluation. The management is responsible for organizing and leading the daily operation of internal controls. The Company's board of directors, audit committee, and directors and senior management ensure that the content of this report does not contain any false records, misleading statements, or significant omissions, and 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 ensure legal and compliant management, asset safety, truthful and complete financial reporting and related information, improve operational efficiency and effectiveness, and promote the achievement of development strategies. Due to inherent limitations in internal controls, they can only provide reasonable assurance of achieving the above objectives. Furthermore, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
II. Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in financial reporting internal controls, as of the baseline date of the internal control evaluation report, there are no significant deficiencies in financial reporting internal controls. The board 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 Normative System and related regulations.
Based on the identification of significant deficiencies in non-financial reporting internal controls, as of the baseline date of the internal control evaluation report, the Company has not identified any significant deficiencies in non-financial reporting internal controls. No factors affecting the effectiveness evaluation conclusion of internal controls have occurred between the baseline date of the internal control evaluation report and the issuance date of the internal control evaluation report.