Important Statement
According to the regulations 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 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 board of directors, audit committee, and senior management ensure 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 truthfulness, accuracy, and completeness of the report. The objective of the company's internal controls 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 development strategies are promoted. 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 infer the future effectiveness of internal controls based on evaluation results.
Overall Situation of Internal Control Evaluation
Based on the identification of internal controls over financial reporting, as of the internal control evaluation report benchmark date, there are no significant or important deficiencies in financial reporting internal controls, nor were any significant deficiencies found in non-financial reporting internal controls. The board believes that the company has maintained effective financial reporting internal controls in all material aspects in accordance with the requirements of the enterprise internal control standard system and related regulations. According to the identification of significant deficiencies in non-financial reporting internal controls, as of the internal control evaluation report benchmark date, the company found no significant deficiencies in non-financial reporting internal controls. No factors affecting the evaluation conclusion of internal control effectiveness occurred between the internal control evaluation report benchmark date and the issuance date of the internal control evaluation report. The company engaged Tianheng Accounting Firm (Special General Partnership) to conduct an independent audit of the effectiveness of internal controls.
Basis for Internal Control Evaluation
This evaluation report aims to evaluate the design and operational effectiveness of internal controls as of December 31, 2025, in accordance with the requirements of the "Basic Norms for Enterprise Internal Control" and "Guidelines for Enterprise Internal Control Evaluation" jointly issued by the Ministry of Finance of the People's Republic of China and four other ministries, combined with the company's internal control system and evaluation methods, based on daily supervision and special supervision of internal controls.