Fujian Fuzhou Software Co., Ltd.
2025 Annual Internal Control Self-Evaluation Report
To all shareholders of Fujian Fuzhou Software Co., Ltd.:
Fujian Fuzhou Software Co., Ltd. (hereinafter referred to as "Fuzhou Software" or "the Company") has, 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"), combined with the Company's internal control system and evaluation methods, and based on daily and special supervision of internal controls, evaluated the effectiveness of internal controls as of December 31, 2025 (the "Internal Control Self-Evaluation Report Base Date"). The report on the Company's internal control evaluation is as follows:
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Norms System, establishing and effectively implementing internal controls, evaluating their effectiveness, and truthfully disclosing the internal control self-evaluation report are the responsibilities of the Company's Board of Directors. The Audit Committee supervises the establishment and implementation of internal controls by the Board of Directors. Management is responsible for organizing and leading the daily operation of the Company's internal controls. The Company's Board of Directors, Audit Committee, directors, and senior management guarantee that the content of this report contains no false records, misleading statements, or significant omissions, and they shall bear individual and joint legal liability for the truthfulness, accuracy, and completeness of the report.
The objective of the Company's internal control is to reasonably guarantee lawful and compliant operations, asset security, and the truthfulness and completeness of financial reports and related information by establishing and continuously improving the internal control system, 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, changes in circumstances may render internal controls inappropriate, or reduce the degree of compliance with control policies and procedures. Therefore, there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control evaluation.
II. Conclusion of Internal Control Evaluation
Based on the identification of material defects in the Company's financial reporting internal controls, as of the Internal Control Self-Evaluation Report Base Date, there are no material defects in financial reporting internal controls. The Board of Directors believes that the Company has, in all material respects, maintained effective financial reporting internal controls in accordance with the requirements of the Enterprise Internal Control Norms System and relevant regulations.
Based on the identification of material defects in the Company's non-financial reporting internal controls, as of the Internal Control Self-Evaluation Report Base Date, the Company has not found any material defects in non-financial reporting internal controls.
No factors have occurred between the Internal Control Self-Evaluation Report Base Date and the issuance date of this Internal Control Self-Evaluation Report that affect the conclusion of the internal control effectiveness evaluation.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation
The Company determines the main entities, businesses, and matters included in the scope of evaluation, as well as high-risk areas, based on a risk-oriented approach. The main entities included in the scope of evaluation are: Fuzhou Software and its wholly-owned subsidiaries and controlled subsidiaries. The total assets of the entities included in the scope of evaluation account for 100% of the total assets in the Company's consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the Company's consolidated financial statements.
- Internal Control Environment
(1) Corporate Governance Structure