Shandong Kaisheng New Materials Co., Ltd.
2025 Annual Internal Control Self-Assessment Report
To all shareholders of Shandong Kaisheng New Materials Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other regulatory requirements for internal control (hereinafter referred to as the "Enterprise Internal Control Normative System"), and based on the internal control system and evaluation methods of Shandong Kaisheng New Materials Co., Ltd. (hereinafter referred to as the "Company"), we conducted an evaluation of the effectiveness of the Company's internal controls as of December 31, 2025 (the benchmark date for the internal control evaluation report) on the basis of daily supervision and special supervision of internal controls.
1. Important Statement
The Company's board of directors, directors, and senior management guarantee that this report contains no false records, misleading statements, or significant omissions, and they bear individual and joint responsibility for the authenticity, accuracy, and completeness of the report's content. Establishing, improving, and effectively implementing internal controls is the responsibility of the Company's board of directors; the management is responsible for organizing and leading the daily operation of the Company's internal controls. The objective of the Company's internal controls is to reasonably ensure that business management is legal and compliant, assets are secure, financial reporting and related information are true and complete, operational efficiency and effectiveness are improved, and the Company achieves its development strategy. Due to the inherent limitations of internal controls, they can only provide reasonable assurance in achieving the above objectives. Additionally, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, thus inferring the future effectiveness of internal controls based on evaluation results carries certain risks.
2. 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, there are no significant deficiencies in financial reporting internal controls. The board believes that the Company has maintained effective financial reporting internal controls in all material respects in accordance with the requirements of the Enterprise Internal Control Normative System and related 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 occurred between the benchmark date of the internal control evaluation report and the issuance date of the internal control evaluation report.
3. Basis, Scope, Procedures, and Methods of Internal Control Evaluation
(1) Basis for Internal Control Evaluation
This internal control self-assessment is based on the "Basic Norms for Enterprise Internal Control," "Supporting Guidelines for Enterprise Internal Control," "Guidelines for Internal Control Evaluation," the "Shenzhen Stock Exchange Listing Rules for Growth Enterprise Market," the "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange—Standard Operation of Growth Enterprise Market Listed Companies," and the "General Provisions for Annual Internal Control Evaluation Reports" issued by the CSRC and the Ministry of Finance, among other requirements. It combines the Company's relevant systems, processes, and other documents to conduct internal control evaluation work for the Company as of December 31, 2025.