Self-Evaluation Report on Internal Control for Yili Chuaning Biotechnology Co., Ltd. for the Year 2025
To all shareholders of Yili Chuaning Biotechnology Co., Ltd.:
In accordance with the provisions of 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 Yili Chuaning Biotechnology Co., Ltd. (hereinafter referred to as "the Company"), we have evaluated the effectiveness of the Company's internal control as of December 31, 2025 (the benchmark date for the internal control evaluation report).
Important Statement
According to the enterprise internal control normative system, it is the responsibility of the Company's board of directors to establish, maintain, and effectively implement internal controls, evaluate their effectiveness, and disclose the internal control evaluation report truthfully. The audit committee supervises the establishment and implementation of internal controls by the board of directors. The 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 objective of the Company's internal control is to reasonably ensure legal compliance in operations, asset security, truthful and complete financial reporting 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 for achieving the above objectives. Additionally, changes in circumstances may render internal controls inappropriate or ineffective, or reduce compliance with control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
Internal Control Evaluation Conclusion
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As of the benchmark date for the internal control evaluation report, are there any significant deficiencies in financial reporting internal controls?
- □ Yes
- √ No
-
Conclusion on the evaluation of financial reporting internal controls:
- √ Effective
- □ Ineffective
Based on the identification of significant deficiencies in the Company's financial reporting internal controls, there are no significant deficiencies as of the benchmark date for the internal control evaluation report. The board of directors 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.
- Were any significant deficiencies in non-financial reporting internal controls identified?
- □ Yes
- √ No
Based on the identification of significant deficiencies in the Company's non-financial reporting internal controls, no significant deficiencies were found as of the benchmark date for the internal control evaluation report.
- Factors affecting the evaluation conclusion of internal control effectiveness between the benchmark date and the issuance date of the internal control evaluation report:
- □ Applicable
- √ Not applicable
No factors affecting the evaluation conclusion of internal control effectiveness occurred between the benchmark date and the issuance date of the internal control evaluation report.
Internal Control Evaluation Work Situation
- Basis for Internal Control Evaluation
The Company organized the internal control evaluation work based on the requirements of the enterprise internal control normative system and other relevant laws, regulations, and rules, in conjunction with the Company's relevant systems and processes.