300867SZSE

Board of Directors' Special Explanation on the Major Defect in Non-Financial Report Internal Control Identified by the Accounting Firm

Shengyuan Environmental Protection Co., Ltd.·April 23, 2026·3 pages

✨ AI Summary

The company's board of directors and audit committee reviewed the accounting firm's findings on a major defect in non-financial internal controls related to investment management. The defect involved insufficient due diligence and post-investment management for a fund. The company has implemented corrective measures, including enhanced risk management and post-investment tracking, to prevent recurrence and improve internal controls.

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Board of Directors' Special Explanation on the Major Defect in Non-Financial Report Internal Control Identified by the Accounting Firm

The Board of Directors of Sanyuan Environmental Protection Co., Ltd. (hereinafter referred to as the "Company")

Regarding the Special Explanation on the Major Defect in Non-Financial Report Internal Control Identified by the Accounting Firm

The Company engaged Rongcheng Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Rongcheng Firm") to audit the Company's internal control for 2025. Rongcheng Firm issued the "2025 Internal Control Audit Report of Sanyuan Environmental Protection Co., Ltd." This report concluded that as of December 31, 2025, the Company maintained effective financial report internal controls in all material aspects in accordance with the "Basic Norms for Enterprise Internal Control" and relevant regulations. At the same time, the report pointed out a major defect in the Company's non-financial report internal control. The specific situation is as follows:

I. Matters Involving Major Defects in Non-Financial Report Internal Control

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