Verification Opinion of Guotai Junan Securities Co., Ltd. on Zhejiang Jindao Technology Co., Ltd.'s 2025 Internal Control Self-Assessment Report
Guotai Junan Securities Co., Ltd. (hereinafter referred to as "Guotai Junan" or "Sponsor") is the sponsor for the initial public offering and listing on the Growth Enterprise Market of Zhejiang Jindao Technology Co., Ltd. (hereinafter referred to as "Jindao Technology" or "Company"). In accordance with the relevant laws, regulations, and normative documents such as the "Regulations on the Management of Securities Issuance and Listing Sponsorship," "Shenzhen Stock Exchange Growth Enterprise Market Listing Rules," and "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies," the following verification opinion is provided regarding the "2025 Internal Control Self-Assessment Report of Zhejiang Jindao Technology Co., Ltd.":
I. Conclusion of Internal Control Assessment
Based on the identification of significant defects in the internal control of financial reporting, as of the benchmark date of the internal control self-assessment report, the Company has no significant defects in financial reporting internal controls. The Board of Directors believes that the Company has maintained effective internal controls over financial reporting in all material respects in accordance with the requirements of the enterprise internal control standard system and relevant regulations. Based on the identification of significant defects in non-financial reporting internal controls, as of the benchmark date of the internal control self-assessment report, the Company has not identified any significant defects in non-financial reporting internal controls. Between the benchmark date of the internal control self-assessment report and the issuance date of the report, no factors affecting the effectiveness of the internal control assessment conclusion have occurred.
II. Internal Control Assessment Work
(A) Scope of Internal Control Assessment
The Company has established an internal control system covering all business units, subsidiaries, and back-office organizations based on a risk-oriented principle, and continuously evaluates the design and operation of internal controls. The main units included in the assessment are:
- Zhejiang Jindao Technology Co., Ltd., as the listed company;
- Shaoxing Yuntong Hydraulic Machinery Co., Ltd., as a wholly-owned subsidiary of the Company;
- The total assets of the units included in the assessment account for 100.00% of the total assets in the consolidated financial statements, and the total operating income accounts for 100.00% of the total operating income in the consolidated financial statements.
The main business and matters included in the assessment cover: corporate governance, organizational structure, development strategy, corporate culture, information disclosure, information systems, internal audit at the company level; human resources, financial reporting, sales, procurement, fund management, asset management, contract management, project management, guarantee business, related party transactions, and control over subsidiaries at the business level. High-risk areas of focus include: procurement, sales, guarantee business, and related party transactions.
- Governance Structure
The Company has established a standardized governance structure and rules of procedure in accordance with the requirements of the "Company Law," "Securities Law," and relevant regulations, as well as the provisions of the "Articles of Association." Responsibilities and authorities in decision-making, execution, and supervision are clearly defined, with distinct roles among the shareholders' (general) meeting, Board of Directors, and management, operating effectively within a sound management framework. The Company regularly reviews and evaluates its governance structure and internal organization, continuously optimizing and standardizing the control structure to meet operational management needs and strategic development requirements.