Fujian Yongfu Electric Power Design Co., Ltd.
Internal Control Evaluation Report
To the Shareholders of Fujian Yongfu Electric Power Design 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 Fujian Yongfu Electric Power Design Co., Ltd.'s (hereinafter referred to as the "Company") 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 "Internal Control Evaluation Report Basis Date").
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Norms System, the establishment, improvement, and effective implementation of internal controls, the evaluation of their effectiveness, and the truthful disclosure in 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 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 Board of Directors and its directors and senior management guarantee that the content of this report is free from any false records, misleading statements, or material omissions, and shall bear individual and joint legal liability for the authenticity, accuracy, and completeness of the report's content.
The objective of the Company's internal control is to reasonably ensure that business operations are legal and compliant, assets are safe, financial reports and related information are true and complete, operating efficiency and effectiveness are improved, and development strategies are achieved. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving these objectives. Furthermore, changes in circumstances may render internal controls inappropriate, or reduce the degree of adherence to control policies and procedures, and 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 determination of material weaknesses in the Company's financial reporting internal controls, as of the Internal Control Evaluation Report Basis Date, 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 Internal Control Evaluation Report Basis Date, the Company has not found any material weaknesses in non-financial reporting internal controls.
No events have occurred between the Internal Control Evaluation Report Basis Date and the issuance date of the Internal Control Evaluation Report that affect internal control effectiveness.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation