AVIC High-Temperature Alloy Materials Co., Ltd.
2025 Annual Internal Control Evaluation Report
To all shareholders of AVIC High-Temperature Alloy Materials Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and supporting guidelines, as well as other regulatory requirements for internal control (hereinafter referred to as the enterprise internal control regulatory system), AVIC High-Temperature Alloy Materials Co., Ltd. (hereinafter referred to as "the Company") has conducted a self-assessment of the effectiveness of its internal controls as of December 31, 2025 (the internal control evaluation benchmark date), based on its internal control system and evaluation methods, along with daily supervision and special oversight.
1. Important Statement
According to the provisions of the enterprise internal control regulatory 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 operations of the enterprise internal control. The Company's board of directors, audit committee, and 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 that management is legal and compliant, assets are secure, financial reports and related information are true and complete, operational efficiency and effectiveness are improved, and the Company's development strategy is promoted. Due to inherent limitations in internal controls, they can only provide reasonable assurance of achieving the above objectives. Furthermore, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
2. Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in internal controls over financial reporting, as of the internal control evaluation report benchmark date, there are no significant deficiencies in financial reporting internal controls. 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 regulatory system and related regulations. Based on the identification of significant deficiencies in non-financial reporting internal controls, as of the internal control evaluation report benchmark date, the Company has not identified any significant deficiencies in non-financial reporting internal controls.
Between the internal control evaluation report benchmark date and the date of issuance of the internal control evaluation report, no factors affecting the evaluation conclusion of internal control effectiveness have occurred, and no significant or important deficiencies in the design or execution of internal controls have been found.