Jiangxi Jinli Permanent Magnet Technology Co., Ltd.
2025 Annual Internal Control Self-Evaluation Report
Pursuant to 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"), and in conjunction with Jiangxi Jinli Permanent Magnet Technology Co., Ltd. (hereinafter referred to as the "Company") internal control system and evaluation methods, based on daily and special supervision of internal control, we have evaluated the effectiveness of the Company's internal control as of December 31, 2025 (the "Reporting Date for the Internal Control Evaluation Report").
I. Important Statement
In accordance with the Enterprise Internal Control Norms, it is the responsibility of the Company's Board of Directors to establish, improve, and effectively implement internal control, evaluate its effectiveness, and disclose the internal control evaluation report truthfully. 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 the Company's internal control. The Company's Board of Directors, Audit Committee, directors, and senior management guarantee that this report contains no false statements, misleading representations, or significant omissions, and they shall bear individual and joint legal liability for the truthfulness, accuracy, and completeness of the report's content.
The objective of the Company's internal control is to reasonably guarantee that business management is 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 the Company's internal control, it can only provide a reasonable assurance for achieving these objectives. Furthermore, the Company's continuous development may lead to internal control becoming inappropriate, or may reduce the implementation of internal 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. Internal Control Evaluation Conclusion
Based on the identification of major and significant deficiencies in the Company's financial reporting internal control, as of the Reporting Date for the Internal Control Evaluation Report, there are no major or significant deficiencies in financial reporting internal control. The Board of Directors believes that the Company has maintained effective financial reporting internal control in all material and important aspects in accordance with the requirements of the Enterprise Internal Control Norms and relevant regulations.
Based on the identification of major and significant deficiencies in the Company's non-financial reporting internal control, as of the Reporting Date for the Internal Control Evaluation Report, the Company has not found any major or significant deficiencies in non-financial reporting internal control.
No factors that affect the conclusion on the effectiveness of internal control have occurred between the Reporting Date for the Internal Control Evaluation Report and the date of issuance of the Internal Control Evaluation Report.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation