Important Statement
According to the provisions of 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 Normative System"), combined with Shenglan Technology Co., Ltd.'s (hereinafter referred to as the "Company") internal control system and evaluation methods, we have evaluated the effectiveness of the Company's internal controls as of December 31, 2025 (the benchmark date for the internal control evaluation report).
The establishment, improvement, and effective implementation of internal controls, as well as the truthful disclosure of the internal control evaluation report, are the responsibilities of the Company's board of directors. The management is responsible for organizing and leading the daily operation of the enterprise's internal controls. The Company's 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 individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report's content.
The goal of the Company's internal controls is to reasonably ensure that business management is legal and compliant, assets are secure, financial reports and related information are true and complete, operational efficiency and effectiveness are improved, and the achievement of development strategies is promoted. Due to the inherent limitations of internal controls, they can only provide reasonable assurance for achieving the above goals. Furthermore, changes in circumstances may render internal controls inappropriate or reduce adherence to control policies and procedures, which carries certain risks in inferring the future effectiveness of internal controls based on evaluation results.
Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in financial reporting internal controls, as of the benchmark date of the internal control evaluation report, there are no significant deficiencies in the Company's financial reporting internal controls. The Company's board of directors believes that the Company has maintained effective financial reporting internal controls in all material respects in accordance with the requirements of the Enterprise Internal Control Normative System and related regulations.
Based on the identification of significant deficiencies in non-financial reporting internal controls, as of the benchmark date of the internal control evaluation report, 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 benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report.
Internal Control Evaluation Work Situation
(1) Scope of Internal Control Evaluation
The Company determines the main units, businesses, and high-risk areas included in the evaluation scope based on a risk-oriented principle. The units included in the evaluation scope comprise the parent company and all subsidiaries included in the consolidated scope, with the total assets of the included units accounting for 100% of the total assets in the Company's consolidated financial statements, and the total operating income accounting for 100% of the total operating income in the Company's consolidated financial statements.
The main businesses included in the evaluation scope are: human resources, capital activities, procurement management, asset management, sales and receivables management, inventory and warehousing management, cost and expense management, research and development, information system security management, financial reporting, and information disclosure.