Important Statement
According to the regulations of the enterprise internal control standard 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 audit committee supervises the establishment and implementation of internal controls by the board. The management is responsible for organizing and leading the daily operation of internal controls. The board of directors and senior management guarantee that the content of this report does not contain any false records, misleading statements, or significant omissions, and they bear legal responsibility for the truthfulness, accuracy, and completeness of the report's content. The goal of the company's internal control is to reasonably ensure that business management is legal and compliant, assets are secure, financial reporting and related information are true and complete, operational efficiency and effectiveness are improved, and the development strategy is promoted. Due to the inherent limitations of internal controls, they can only provide reasonable assurance of achieving the above objectives. Furthermore, changes in circumstances may lead to internal controls becoming inappropriate or a decrease in adherence to control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in internal controls over financial reporting, as of the evaluation report benchmark date, there are no significant deficiencies in the internal controls over financial reporting. The company has maintained effective internal controls over financial reporting in all material respects in accordance with the enterprise internal control standard system and relevant regulations. Based on the identification of significant deficiencies in internal controls over non-financial reporting, as of the evaluation report benchmark date, the company has not identified any significant deficiencies in non-financial reporting internal controls. No factors affecting the evaluation conclusion of internal control effectiveness have occurred between the evaluation report benchmark date and the date of issuance of the evaluation report.
Internal Control Evaluation Work Situation
In 2025, the company conducted internal control evaluations following the principles of comprehensiveness, materiality, and objectivity. Led by the internal control and internal audit department, colleagues from the group headquarters, subsidiaries, and various departments participated extensively. The evaluation involved on-site observations, business interviews, physical inventory checks, financial data analysis, and transaction document sampling to comprehensively and systematically assess the efficiency and effectiveness of the design and execution of the company's internal control system.