Important Statement
According to the provisions of the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (hereinafter referred to as the "Enterprise Internal Control Normative System"), combined with the internal control system and evaluation methods of Ningbo Zhenyu Technology Co., Ltd. (hereinafter referred to as the "Company"), we have evaluated the effectiveness of the Company's internal controls as of December 31, 2025 (the benchmark date for the internal control evaluation report).
The establishment, improvement, and effective implementation of internal controls, as well as 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. The management is responsible for organizing and leading the daily operation of internal controls. 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's content.
The goal of the Company's internal control is to reasonably ensure that business management is legal and compliant, assets are secure, financial reports and related information are true and complete, operational efficiency and effectiveness are improved, and the development strategy is promoted. Due to the inherent limitations of internal controls, they can only provide reasonable assurance of achieving the above goals. Additionally, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
Objectives and Principles of Internal Control
(1) Objectives of Internal Control
The objectives of the Company's internal control are to reasonably ensure compliance, safety, and authenticity, enhance efficiency and effectiveness, and promote strategic realization.
(2) Principles for Establishing Internal Control Systems
- Comprehensiveness Principle: Internal control should cover the entire process of decision-making, execution, and supervision, encompassing all business and matters of the enterprise and its affiliated units.
- Materiality Principle: Based on comprehensive control, internal control should focus on significant business matters and high-risk areas.
- Checks and Balances Principle: Internal control should form a mechanism of mutual checks and supervision in governance structure, organizational setup, and distribution of responsibilities, while also considering operational efficiency.
- Adaptability Principle: Internal control should be adapted to the enterprise's scale, business scope, competitive situation, and risk level, and should be adjusted in a timely manner as circumstances change.
- Cost-Benefit Principle: Internal control should weigh implementation costs against expected benefits to achieve effective control at an appropriate cost.
Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in financial reporting internal controls, as of the benchmark date for the internal control evaluation report, the Company has no significant deficiencies in financial reporting internal controls. The board believes that during the reporting period, 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 identification of significant deficiencies in non-financial reporting internal controls, as of the benchmark date for the internal control evaluation report, 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 benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report.