Verification Opinion of CITIC Securities Co., Ltd. on the Self-Evaluation Report of Internal Control for 2025 of Liaoning Xinde New Materials Technology (Group) Co., Ltd.
CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "the Sponsor") has conducted a verification of the "2025 Internal Control Self-Evaluation Report" of Liaoning Xinde New Materials Technology (Group) Co., Ltd. (hereinafter referred to as "Xinde New Materials" or "the Company") as the sponsor and ongoing supervisory institution, in accordance with relevant regulations including the "Administrative Measures for Sponsoring Securities Issuance and Listing," "Shenzhen Stock Exchange GEM Listing Rules," and "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operation of GEM Listed Companies." The specific situation is as follows:
1. Conclusion of Internal Control Evaluation
Based on the identification of significant defects in the internal control of financial reporting, as of the evaluation report reference date, the Company has no significant defects in financial reporting internal controls. The Board of Directors believes that the Company has maintained effective financial reporting internal controls in all significant aspects in accordance with the enterprise internal control standard system and relevant regulatory requirements. Based on the identification of significant defects in non-financial reporting internal controls, as of the evaluation report reference date, the Company has not identified any significant defects in non-financial reporting internal controls. No factors have occurred between the internal control evaluation report reference date and the issuance date of the internal control evaluation report that would materially affect the conclusion of the internal control effectiveness evaluation.
2. Internal Control Evaluation Work Situation
(1) Scope of Internal Control Evaluation
The Company determined the main units, businesses, and matters included in the evaluation scope based on a risk-oriented principle.
-
Main Units Included in the Evaluation Scope The main units included in the evaluation scope are Liaoning Xinde New Materials Technology (Group) Co., Ltd. and its subsidiaries. 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.
-
Main Businesses and Matters Included in the Evaluation Scope The main businesses and matters included in the evaluation scope are: governance structure, organizational structure, development strategy, human resources, social responsibility, corporate culture, risk assessment, capital management, procurement and payment, asset management, sales and collection, external investment, related party transactions, guarantee business, comprehensive budgeting, contract management, engineering projects, information and communication, internal audit and supervision, information disclosure, etc.