Minmetals Securities Co., Ltd. (hereinafter referred to as "Minmetals Securities" or "the Sponsor") is the sponsor for Shenzhen Xince Standard Technology Service Co., Ltd. (hereinafter referred to as "Xince Standard" or "the Company") in its issuance of convertible corporate bonds to unspecified objects. In accordance with the "Regulations on the Management of Securities Issuance and Listing Sponsorship," "Shenzhen Stock Exchange Listing Rules," and "Self-Regulatory Guidelines No. 2 for Listed Companies on the Growth Enterprise Market," as well as other relevant laws, regulations, and normative documents, Minmetals Securities has conducted a verification of the relevant matters in Xince Standard's internal control self-evaluation report for 2025. The specific situation is as follows:
I. Conclusion of Internal Control Evaluation
According to the identification of significant defects in the internal control of the financial report, there are no significant defects in the financial reporting internal control as of the evaluation report's reference date. 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 internal control normative system and relevant regulations. Based on the identification of significant defects in non-financial reporting internal control, the company has not found any significant defects in non-financial reporting internal control as of the evaluation report's reference date. No factors affecting the effectiveness of internal control evaluation conclusions have occurred between the reference date of the internal control evaluation report and the issuance date of the report.
II. Internal Control Evaluation Work Situation
(A) Objectives and Principles of Internal Control Evaluation
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Objectives
- Establish and improve an internal organizational structure that meets modern management requirements, forming a scientific decision-making mechanism, execution mechanism, and supervision mechanism to ensure the achievement of the company's operational management objectives.
- Establish an effective risk control system, strengthen risk management, and ensure the healthy operation of all business activities.
- Avoid or reduce risks, plug loopholes, eliminate hidden dangers, prevent and promptly detect and correct various errors and fraudulent behaviors, and protect the safety and integrity of the company's assets.
- Standardize the company's accounting behavior, ensure the authenticity and completeness of accounting data, and improve the quality of accounting information.
- Ensure the implementation of relevant national laws, regulations, and the company's internal control systems.
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Principles
- Internal control complies with relevant national laws and regulations and the Ministry of Finance's "Basic Norms for Enterprise Internal Control," as well as the company's actual situation.
- Internal control covers all economic activities, departments, and positions within the unit, focusing on key control points in the business processing process, and is implemented in decision-making, execution, supervision, feedback, and other links.
- Internal control constrains all personnel involved in accounting work, and no department or individual may have powers beyond internal control.
- Internal control ensures the reasonable setting and division of responsibilities and powers of internal institutions and positions, adhering to the separation of incompatible duties to ensure clear responsibilities and mutual supervision between different positions.
- Internal control follows the cost-effectiveness principle, achieving the best control effect at a reasonable control cost.
- The internal control system is continuously revised and improved in response to changes in the external environment, adjustments in business functions, and increased management requirements.