Zhejiang Runyang New Material Technology Co., Ltd. 2025 Self-Evaluation Report on Internal Control
To all shareholders of Zhejiang Runyang New Material Technology Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines issued by the Ministry of Finance, the China Securities Regulatory Commission, and other five ministries, as well as other internal control regulatory requirements (hereinafter referred to as the "Enterprise Internal Control Norms System"), and combined with Zhejiang Runyang New Material Technology Co., Ltd.'s (hereinafter referred to as the "Company" or "Runyang Technology") internal control system and evaluation methods, based on daily supervision and special supervision of internal control, we have conducted a self-evaluation of the effectiveness of the Company's internal control as of December 31, 2025 (the base date of the internal control evaluation report).
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Norms System, the establishment, sound implementation, and effective evaluation of internal control, 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 Company's internal control; the General Manager's office is responsible for organizing and leading the daily operation of the Company's internal control.
The Company's Board of Directors, Audit Committee, and all 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 authenticity, accuracy, and completeness of the report's content.
The objective of the Company's internal control is to reasonably ensure that business operations are legal and compliant, assets are safe, financial reports and related information are true and complete, operating efficiency and effectiveness are improved, and the Company's development strategies are promoted. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving these objectives. Furthermore, changes in circumstances may render internal control inappropriate, or reduce the degree of compliance with control policies and procedures, and there is a certain risk in inferring the future effectiveness of internal control based on the results of the internal control evaluation.
II. Conclusion of Internal Control Evaluation
Based on the recognition standards for material weaknesses in financial reporting internal control, as of the base date of the internal control evaluation report, there are no material weaknesses in financial reporting internal control. The Board of Directors believes that the Company has maintained effective financial reporting internal control in all material aspects in accordance with the requirements of the Enterprise Internal Control Norms System and relevant regulations.
Based on the recognition of material weaknesses in non-financial reporting internal control, as of the base date of the internal control evaluation report, the Company has not found any material weaknesses in non-financial reporting internal control.
The factors that have not affected the conclusion of the internal control effectiveness evaluation between the base date of the internal control evaluation report and the date of issuance of the internal control evaluation report.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation
The Company determines the main entities, businesses, and matters included in the evaluation scope and high-risk areas in accordance with the requirements of the internal control norms system and the principle of risk orientation.
The main entities included in the scope of internal control evaluation during the reporting period include: the Company and its subsidiaries within the consolidated financial statement scope. The total assets of the entities included in the evaluation scope account for 100% of the Company's consolidated financial statement total assets, and the total operating income accounts for 100% of the Company's consolidated financial statement total operating income.