Securities Code: 301216 Bond Code: 123247 Securities Abbreviation: Wankai New Material Bond Abbreviation: Wankai Convertible Bond Announcement Number: 2026-018
Wankai New Material Co., Ltd. 2025 Annual Internal Control Self-Evaluation Report
To all shareholders of Wankai New Material Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines jointly issued by the Ministry of Finance, China Securities Regulatory Commission, and other departments, and other internal control regulatory requirements, combined with Wankai New Material Co., Ltd.'s (hereinafter referred to as the Company or this Company) internal control system and evaluation methods, based on daily and special supervision of internal control, we have evaluated the reasonableness, completeness, and effectiveness of the Company's internal control establishment as of December 31, 2025 (the base date of the internal control evaluation report), and identified any defects in the design and operation of internal control. The evaluation report on the Company's internal control related to the Company's financial statements as of December 31, 2025, is as follows:
I. Important Statement
Internal control is a process implemented by the company's board of directors, management, and all employees to achieve control objectives. Under the supervision of the company's governance structure, effective internal control is designed, implemented, and maintained in accordance with the requirements of the enterprise internal control normative system, evaluated for its effectiveness, and truthfully disclosed in the internal control evaluation report, which is the responsibility of the company's board of directors. The Audit Committee of the Board of Directors 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 and its 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 liability for the authenticity, accuracy, and completeness of the report's content.
The objective of establishing and implementing internal control is to reasonably guarantee the legality and compliance of enterprise business management, the safety of assets, and the truthfulness and completeness of financial reports and related information, to improve operating efficiency and effectiveness, and to promote the realization of the enterprise's development strategy. Due to the inherent limitations of internal control, it can only provide reasonable assurance to achieve the above objectives. In addition, changes in circumstances may cause internal control to become inappropriate, or the degree of compliance with control policies or procedures may decrease. There is a certain risk in inferring the effectiveness of future internal control based on the results of the internal control evaluation. The Company's Board of Directors, Audit Committee, and Internal Audit Department have conducted a comprehensive and in-depth inspection of the Company's current internal control and its operation in accordance with the requirements of relevant laws and regulations such as the "Company Law," "Securities Law," "Basic Norms for Enterprise Internal Control," and the "Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 2 - Standardized Operation of GEM Listed Companies."
II. Objectives and Principles for Establishing the Company's Internal Control System
To promote the standardized operation and healthy development of the company, establish a self-restraint mechanism, improve decision-making efficiency and company profitability, and ensure the achievement of the company's business strategy objectives, in accordance with the "Company Law," "Securities Law," "Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 2 - Standardized Operation of GEM Listed Companies," and other relevant laws, regulations, normative documents, and the "Articles of Association" and other internal system requirements, the company has formulated an internal control management system in accordance with the requirements of establishing a modern enterprise system.