Verification Opinion on the Internal Control Evaluation Report
Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities") is the sponsor for the initial public offering of Dongli Machinery Manufacturing Co., Ltd. (hereinafter referred to as "Dongli Machinery," "the Company," or "the Issuer"). In accordance with the requirements of the "Regulations on the Administration of Securities Issuance and Listing Sponsorship" and the "Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 2 - Standardized Operations of Growth Enterprise Market Listed Companies," Huatai United Securities has verified the relevant circumstances of Dongli Machinery's internal control self-evaluation report for 2025 and expresses the following independent opinion:
1. Internal Control Evaluation Situation of Dongli Machinery
(1) Scope of Internal Control Evaluation
The Company determined the main units, businesses, and high-risk areas included in the evaluation scope based on a risk-oriented principle. The main units included in the evaluation scope are the Company and its wholly-owned subsidiaries, specifically: Dongli Machinery Manufacturing Co., Ltd., Shandong Anoda Auto Parts Manufacturing Co., Ltd., Hebei Anoda Auto Damper Manufacturing Co., Ltd., Shanghai Anoda Technology Co., Ltd., Dongli Deutschland GmbH, and Dongli USA Inc. The total assets of the units included in the evaluation scope account for 100% of the total assets in the consolidated financial statements of the Company, and the total operating income accounts for 100% of the total operating income in the consolidated financial statements. The main businesses and matters included in the evaluation scope encompass governance structure, organizational structure, human resource management, social responsibility, and controls over major business operations, including incompatible duties separation control, authorization and approval control, procurement and payment management, sales and collection management, asset management, fund management, contract management, external guarantees, related party transactions, fundraising usage and management, research and development management, financial reporting, information disclosure, information and communication, comprehensive budgeting, information systems, and other management controls. The high-risk areas of particular focus include fund management, fundraising usage and management, related party transactions, and procurement and payment management. The aforementioned units, businesses, matters, and high-risk areas cover the main aspects of the Company's operational management, with no significant omissions.
(2) Basis for Internal Control Evaluation Work and Standards for Identifying Internal Control Deficiencies
The Company organized the internal control evaluation work based on the internal control standard system documents. The Board of Directors established specific standards for identifying significant, important, and general deficiencies in internal control based on the requirements of the internal control standard system, considering factors such as the Company's scale, industry characteristics, risk preference, and risk tolerance, separately for financial reporting internal control and non-financial reporting internal control. The standards for identifying internal control deficiencies established by the Company are as follows:
- Standards for Identifying Financial Reporting Internal Control Deficiencies
- Quantitative Standards:
Affected Item General Deficiency Important Deficiency Significant Deficiency Total Assets Affected amount < 0.5% of total assets 0.5% ≤ affected amount < 1% of total assets Affected amount ≥ 1% of total assets Operating Income Affected amount < 1% of operating income 1% ≤ affected amount < 2% of operating income Affected amount ≥ 2% of operating income
- Quantitative Standards: