- Hangzhou Heshun Technology Co., Ltd. 2025 Annual Internal Control Self-Assessment Report
According to the "Self-Regulatory Guidelines for Listed Companies No. 2 - Standard Operations for GEM Listed Companies," "Basic Norms for Enterprise Internal Control," and 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 Hangzhou Heshun Technology Co., Ltd. (hereinafter referred to as "the Company"), we evaluated the effectiveness of the Company's internal controls as of December 31, 2025 (the benchmark date for the internal control evaluation report).
I. Important Statement
According to the provisions of the enterprise internal control normative 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 of directors. 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 bear individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report's content. The objectives of the Company's internal controls are to reasonably ensure legal compliance in management, asset safety, the truthfulness, accuracy, and completeness of financial reports and related information, improve operational efficiency and effectiveness, and promote the achievement of development strategies. Due to inherent limitations in internal controls, they can only provide reasonable assurance of achieving the above objectives. Furthermore, changes in circumstances may render internal controls inappropriate or reduce adherence to control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
II. Internal Control Evaluation Work
The Company's board of directors authorized the internal audit institution to be responsible for the specific organization and implementation of the internal control evaluation work, evaluating high-risk areas and units included in the evaluation scope. During the evaluation process, appropriate methods such as individual interviews, walkthrough tests, and sampling were used to extensively collect evidence on the effectiveness of the design and operation of internal controls, accurately fill out evaluation work papers, analyze and identify internal control deficiencies, discover shortcomings, and implement rectifications.
1. Evaluation Scope
The Company determined the main units, businesses, and matters included in the evaluation scope based on a risk-oriented principle.
- The units included in the evaluation scope are: Hangzhou Heshun Technology Co., Ltd., Zhejiang Heshun New Materials Co., Ltd., Zhejiang Heshanju Technology Co., Ltd., and Hangzhou Hexion Carbon Fiber Technology Co., Ltd. The total assets of the units included in the evaluation scope account for 100% of the total assets in the Company's consolidated financial statements, and the total operating income accounts for 100% of the total operating income in the Company's consolidated financial statements.
- The main businesses and matters included in the evaluation scope are: corporate governance and organizational structure, internal audit institution setup, corporate culture, human resource management, procurement and expense and payment activities, sales and collection activities, fixed asset management, financial management and reporting activities, related party transactions, external guarantees, use of raised funds, major investments, and information disclosure.