Review Opinion on Xinling Electric Co., Ltd.'s 2025 Internal Control Evaluation Report
Guotai Junan Securities Co., Ltd. (hereinafter referred to as "Guotai Junan" or "the Sponsor") is the sponsor for the continuous supervision of Xinling Electric Co., Ltd. (hereinafter referred to as "Xinling Electric" or "the Company") during its initial public offering. In accordance with the relevant regulations including the "Administrative Measures for the Sponsorship of Securities Issuance and Listing," the "Shenzhen Stock Exchange GEM Listing Rules," and the "Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies," we have reviewed the 2025 Internal Control Evaluation Report of Xinling Electric. The review findings and opinions are as follows:
1. Internal Control Evaluation Work
(1) Scope of Internal Control Evaluation
The Company determined the scope of evaluation based on a risk-oriented principle, including major units, businesses, and high-risk areas. The main units included the Company and its consolidated subsidiaries. The total assets of the evaluated units accounted for 100% of the total assets in the consolidated financial statements, and the total revenue accounted for 100% of the total revenue in the consolidated financial statements. The main businesses and matters included five aspects: internal control environment, risk assessment, internal control activities, information and communication, and internal supervision. Key high-risk areas included control of monetary funds, procurement, asset management, and sales. Detailed information is as follows: