Special Explanation by the Board of Directors and Audit Committee
Tianjian Accounting Firm (Special General Partnership) (hereinafter referred to as "Tianjian") conducted an audit of the internal control situation of Chongqing International Composite Materials Co., Ltd. (hereinafter referred to as "the Company" or "International Composite Materials") for the year 2025 and issued an unqualified internal control audit report with an emphasis of matter paragraph. In accordance with the relevant requirements of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, the Board of Directors and Audit Committee of the Company provide the following special explanation regarding the matters involved in the unqualified internal control audit report with an emphasis of matter paragraph:
1. Content of the Emphasis of Matter Paragraph in the Internal Control Audit Report
The unqualified internal control audit report with an emphasis of matter paragraph issued by Tianjian includes the following specific content: "We remind users of the internal control audit report to pay attention to the internal control deficiencies in the related party transaction decision-making procedures of the Company's controlling subsidiary, Changzhou Hongfa Zongheng New Material Technology Co., Ltd. (hereinafter referred to as Hongfa New Materials). The Company has reviewed the aforementioned internal control of Hongfa New Materials and developed rectification measures. This paragraph does not affect the audit opinion already issued on the internal control of the financial report."