Shenzhen Xinhao Optoelectronic Technology Co., Ltd. 2025 Annual Internal Control Evaluation Report To all shareholders of Shenzhen Xinhao Optoelectronic Technology Co., Ltd.: In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, other internal control regulatory requirements (hereinafter referred to as the "Internal Control System"), and combined with Shenzhen Xinhao Optoelectronic Technology Co., Ltd.'s (hereinafter referred to as the "Company") internal control system and evaluation methods, based on daily supervision and special supervision of internal control, we have evaluated the effectiveness of the Company's internal control as of December 31, 2025 (the evaluation report benchmark date).
I. Important Statement In accordance with the requirements of the Internal Control System, establishing and effectively implementing internal control, and evaluating its effectiveness, and truthfully disclosing 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 control by the Board of Directors. The management is responsible for organizing and leading the daily operation of the Company's internal control. The Company's Board of Directors, Audit Committee, Directors, and Senior Management guarantee that the content of this report does not contain any false records, misleading statements, or major omissions, and 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, improve the efficiency and profitability of the Company's business operations, and promote the achievement of development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the achievement of the above objectives. In addition, changes in circumstances may cause internal control to become inappropriate, or the degree of compliance with control policies and procedures may decrease. Based on the results of the internal control evaluation, there is a certain risk in inferring the effectiveness of future internal control.
II. Conclusion of Internal Control Evaluation The Company's management fully recognizes the importance of a good and sound management mechanism for achieving business management objectives. Based on its actual situation, it has established an internal control system covering all aspects of production and operation, ensuring the normal conduct of the Company's business activities. The Company has a good internal control environment, a sound and complete internal control system and standardized business processes, strong information transmission and communication capabilities, and effective internal supervision and management. The Company's internal control system has been effectively implemented. Based on the identification of major defects in the Company's financial reporting internal control, as of the benchmark date of the internal control evaluation report, there were no major defects in financial reporting internal control. The Board of Directors believes that the Company has maintained effective financial reporting internal control in all material respects in accordance with the requirements of the Internal Control System and relevant regulations. Based on the identification of major defects in the Company's non-financial reporting internal control, as of the benchmark date of the internal control evaluation report, the Company found no major defects in non-financial reporting internal control. No factors have occurred between the benchmark date of the internal control evaluation report and the issuance date of the internal control evaluation report that affect the conclusion of the internal control effectiveness evaluation.