Zhongjing Food Co., Ltd.
2025 Annual Internal Control Self-Assessment Report
To all shareholders of Zhongjing Food Co., Ltd.:
Zhongjing Food Co., Ltd. (hereinafter referred to as "the Company") has conducted an evaluation of the effectiveness of its internal controls as of December 31, 2025, in accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other regulatory requirements for internal control (hereinafter referred to as "the internal control regulatory framework"). This evaluation is based on the Company's internal control systems and assessment methods, alongside daily supervision and special oversight of internal controls.
1. Important Statement
According to the internal control regulatory framework, it is the responsibility of the Company's board of directors to establish, implement, and effectively disclose the internal control evaluation report. The audit committee supervises the establishment and implementation of the internal control system. The management team is responsible for organizing and leading the daily operations of internal control. The Company's board of directors, directors, and senior management ensure 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. The objective of the Company's internal control is to reasonably ensure legal compliance in management, asset security, the authenticity and completeness of financial reporting and related information, improve operational efficiency and effectiveness, and promote the achievement of development strategies. Due to inherent limitations in internal controls, they can only provide reasonable assurance of achieving these objectives. Additionally, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, which carries certain risks in inferring the future effectiveness of internal controls based on evaluation results.
2. Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in financial reporting internal controls, as of the evaluation report date, there are no significant deficiencies in financial reporting internal controls. The board believes that the Company has maintained effective financial reporting internal controls in all material respects in accordance with the requirements of the internal control regulatory framework and related regulations. Based on the identification of significant deficiencies in non-financial reporting internal controls, as of the evaluation report 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 date and the issuance date of the internal control evaluation report.
3. Internal Control Evaluation Work Situation
(1) Scope of Internal Control Evaluation
The Company has determined the main units, businesses, and high-risk areas included in the evaluation scope based on a risk-oriented principle. The main units included in the evaluation scope are: Zhongjing Food Co., Ltd., Zhengzhou Zhongjing Food Technology Co., Ltd., Daxinganling Arctic Blue Food Co., Ltd., Zhongjing Food (Nanyang) Co., Ltd., and Shanghai Zhongjing Industrial Development Co., Ltd. The total assets of the units included in the evaluation scope account for 100% of the total assets in the consolidated financial statements, and the total operating income accounts for 100% of the total operating income in the consolidated financial statements. The main businesses and matters included in the evaluation scope are: organizational structure, development strategy, human resources, corporate culture, capital activities, procurement, asset management, sales, engineering projects, guarantee business, financial reporting, external investment, and related transactions. The high-risk areas of focus mainly include: capital activities, asset management, procurement, sales, and external investment risks.