Keshun Waterproof Technology Co., Ltd.
2025 Self-Evaluation Report on Internal Control
To all shareholders of Keshun Waterproof Technology Co., Ltd.:
Based on the requirements of the "Guideline No. 2 for Self-Regulation of Listed Companies on the Shenzhen Stock Exchange – Norms for Operation of GEM Companies," the "Basic Norms for Enterprise Internal Control," and their supporting guidelines, as well as other internal control regulatory requirements (hereinafter referred to as the "Enterprise Internal Control Norms System"), and in conjunction with Keshun Waterproof Technology Co., Ltd.'s (hereinafter referred to as the "Company") internal control system and evaluation methods, and on the basis of daily and special supervision of internal control, we have evaluated the effectiveness of the Company's internal control 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, the establishment, improvement, and effective implementation of internal control, the evaluation of its effectiveness, and the truthful disclosure of the internal control evaluation report are the responsibilities of the Company's Board of Directors. The Audit Committee of the Board of Directors 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 the Company's internal control. The Company's Board of Directors, the Audit Committee of the Board of Directors, directors, and senior management guarantee that the content of this report is free from any false records, misleading statements, or material omissions, and they 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 reasonably ensure that business operations are legal and compliant, assets are safe, financial reports and related information are true and complete, and to improve operational efficiency and effectiveness, thereby 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 control 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 control 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 control, as of the base date of the internal control evaluation report, the Company has no material weaknesses in financial reporting internal control. Based on the determination of material weaknesses in the Company's non-financial reporting internal control, as of the base date of the internal control evaluation report, the Company has no material weaknesses in non-financial reporting internal control. No factors have occurred between the base date of the internal control evaluation report and the issuance date of the internal control evaluation report that affect the conclusion of the internal control effectiveness evaluation.
The Board of Directors believes that the Company has maintained effective internal control in all major aspects in accordance with the requirements of the Enterprise Internal Control Norms System and relevant regulations, and has not found any material internal control weaknesses.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation
The Company determines the scope of evaluation based on a risk-oriented approach, including key entities, businesses, and matters, as well as high-risk areas. The entities included in the evaluation scope include the parent company and its subsidiaries. The total assets of the entities included in the evaluation scope account for 100% of the Company's consolidated financial statement assets, and the operating revenue accounts for 100% of the Company's consolidated financial statement operating revenue.