Star Core Technology Co., Ltd.
2025 Internal Control Self-Evaluation Report
To all shareholders of Star Core Technology Co., Ltd.:
Star Core Technology Co., Ltd. (hereinafter referred to as the "Company"), in accordance with the Basic Norms for Enterprise Internal Control and its supporting guidelines, as well as other internal control regulatory requirements, and based on the Company's internal control system and evaluation methods, conducted a self-evaluation of the effectiveness of its internal control as of December 31, 2025, for the Company and all its subsidiaries, and holding subsidiaries (hereinafter referred to as the "Group").
I. Important Statement
In accordance with the requirements of the enterprise internal control normative system, the establishment, improvement, and effective implementation of internal control, the evaluation of its effectiveness, and the truthful disclosure of the internal control evaluation report are the responsibilities of the Company's Board of Directors. The management is responsible for organizing and leading the daily operation of the Company's internal control. The Board of Directors and all directors guarantee that the content of this report contains no false records, misleading statements, or material omissions, and shall bear individual and joint responsibility for the authenticity, accuracy, and completeness of the report's content.
The objective of the Group's internal control is to reasonably ensure that operations and management are legal and compliant, assets are safe, financial reports and related information are true and complete, operational efficiency and effectiveness are improved, and development strategies are promoted.
Due to the inherent limitations of internal control, changes in the internal environment, macro environment, and policies and regulations, existing control activities may become inapplicable or deviate. The Group will promptly supplement and improve its internal control system to provide reasonable assurance for the truthfulness and completeness of financial reporting and the achievement of strategic and operational goals.
II. Conclusion of Internal Control Evaluation
Based on the determination of material defects in the Group's financial reporting internal control, as of the benchmark date of the internal control evaluation report, the Group has no material defects in its financial reporting internal control. The Board of Directors believes that the Group has maintained effective financial reporting internal control in all material aspects in accordance with the requirements of the enterprise internal control normative system and relevant regulations.
Based on the determination of material defects in the Group's non-financial reporting internal control, as of the benchmark date of the internal control evaluation report, the Group has found no material defects in its non-financial reporting internal control.
Between the benchmark date of the internal control self-evaluation report and the issuance date of the internal control evaluation report, no factors have occurred that affect the conclusion of the internal control effectiveness evaluation.
III. Internal Control Evaluation Work
(I) Internal Control Evaluation Scope
With the joint efforts of the Board of Directors, management, and all employees, the Group has established a relatively complete and effective internal control management system.
The Group determines the main entities, businesses, matters, and high-risk areas included in the evaluation scope based on a risk-oriented approach.
The main entities included in the evaluation scope are: Star Core Technology Co., Ltd. and all its subsidiaries and wholly-owned subsidiaries. The total assets of the entities included in the evaluation scope account for 97% of the total assets of the consolidated financial statements of the Company, and the total operating income accounts for 99% of the total operating income of the consolidated financial statements of the Company.
The main entities not included in the evaluation scope are: Shanghai Furui Kun Microelectronics Co., Ltd. and its subsidiaries and affiliated companies.