Ningbo Daye Garden Equipment Co., Ltd. 2025 Annual Internal Control Evaluation Report
To All Shareholders of Ningbo Daye Garden Equipment Co., Ltd.:
Ningbo Daye Garden Equipment Co., Ltd. (hereinafter referred to as the "Company") has conducted an evaluation of the effectiveness of its internal controls as of December 31, 2025 (the "Internal Control Evaluation Base Date"), based on the Basic Norms for Enterprise Internal Control and its supporting guidelines, other internal control regulatory requirements (collectively referred to as the "Enterprise Internal Control Normative System"), the Company's internal control system and evaluation methods, and on the basis of daily supervision and special supervision of internal controls. The evaluation was conducted by the Company's Board of Directors.
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Normative System, the establishment, improvement, and effective implementation of internal controls, the evaluation of their effectiveness, and the truthful disclosure of the internal control evaluation report are the responsibilities of the Company's Board of Directors. The Audit Committee supervises the establishment and implementation of internal controls by the Board of Directors. The management is responsible for organizing and leading the daily operation of the Company's internal controls. The Company's Board of Directors, Audit Committee, directors, and senior management guarantee that the content of this report contains no false records, misleading statements, or significant omissions, and they shall 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 provide reasonable assurance that business operations are legal and compliant, assets are safe, financial reporting and related information are true and complete, operating efficiency and effectiveness are improved, and development strategies are achieved. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving these objectives. Furthermore, due to changes in circumstances that may render internal controls inappropriate, or a reduced degree of compliance with control policies and procedures, there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control evaluation.
II. Internal Control Evaluation Conclusion
Based on the determination of material weaknesses in the Company's financial reporting internal controls, as of the Internal Control Evaluation Base Date, there are no material weaknesses in financial reporting internal controls. The Board of Directors believes that the Company has maintained effective financial reporting internal controls in all material aspects in accordance with the requirements of the Enterprise Internal Control Normative System and relevant regulations.
Based on the determination of material weaknesses in the Company's non-financial reporting internal controls, as of the Internal Control Evaluation Base Date, the Company has not found any material weaknesses in non-financial reporting internal controls.
No factors have occurred between the Internal Control Evaluation Base Date and the issuance date of this Internal Control Evaluation Report that affect the conclusion of the internal control effectiveness evaluation.
III. Internal Control Evaluation Work
(I) Objectives of Internal Control
To provide reasonable assurance that business operations are legal and compliant, assets are safe, financial reporting and related information are true and complete, operating efficiency is improved, and the Company achieves its development strategies.
(II) Basis for Internal Control Evaluation
The Company has organized and carried out its internal control evaluation work in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, the "Shenzhen Stock Exchange Listed Companies Self-Regulatory Management Guidelines No. 2—Normative Operation of GEM Listed Companies," and the requirements of the Company's internal rules and regulations.