Important Statement
According to the provisions 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 board of directors of Zhongwei New Materials Co., Ltd. (hereinafter referred to as "the Company"). 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 bear individual and joint legal responsibility for the authenticity, accuracy, and completeness of the report's content. The objective 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 Company's development strategy is promoted and realized. Due to inherent limitations in internal controls, they can only provide reasonable assurance of achieving the above objectives. Additionally, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, making it risky to fully infer the future effectiveness of internal controls based solely on evaluation results. The Company has established a monitoring mechanism for internal controls, and once deficiencies are identified, corrective measures will be taken immediately.
Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in internal controls over financial reporting, as of the internal control evaluation report benchmark 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 enterprise internal control standard system and related regulations. Based on the identification of significant deficiencies in non-financial reporting internal controls, as of the internal control 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 internal control evaluation report benchmark date and the issuance date of the internal control evaluation report.
Internal Control Evaluation Work Situation
In accordance with the relevant requirements of the China Securities Regulatory Commission regarding internal controls for listed companies, as well as the provisions of the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies, and the Basic Norms for Enterprise Internal Control and its supporting guidelines, the Company has established an internal control project leadership group mainly composed of the board of directors and senior executives. Under the leadership group, an internal control project working group has been established, consisting of key personnel from core functions such as human resources, finance, sales, research and development, procurement, production, and infrastructure. The project group regularly reports the progress of internal control work to the board of directors. The internal audit department is responsible for supervising and evaluating the effectiveness of the Company's internal control system.