Important Statement
According to the regulations of the Basic Norms for Enterprise Internal Control issued jointly by the Ministry of Finance and the China Securities Regulatory Commission, we conducted a comprehensive examination of the establishment and implementation of internal controls at CIMC Enric Technology Co., Ltd. (hereinafter referred to as "the Company"). We identified defects in the design and implementation of internal controls and conducted a thorough evaluation of the reasonableness, completeness, and effectiveness of the internal controls established by the Company. The internal control evaluation report as of December 31, 2025 (the reference date for the internal control evaluation report) is as follows:
Internal Control Evaluation Conclusion
Based on the identification of significant defects in the internal controls over financial reporting, as of the reference date of the internal control evaluation report, there are no significant defects in the internal controls over financial reporting. The board believes that the Company has maintained effective internal controls over financial reporting in all material respects in accordance with the requirements of the Basic Norms for Enterprise Internal Control and relevant regulations. Based on the identification of significant defects in non-financial reporting internal controls, as of the reference date of the internal control evaluation report, the Company has not identified any significant defects in non-financial reporting internal controls.
Basic Requirements for Internal Control Evaluation
Principles of Internal Control Evaluation
- The evaluation should adhere to the principles of comprehensiveness, significance, and independence to ensure that the evaluation work is independent, objective, and fair.
Content of Internal Control Evaluation
- Based on the internal environment, focusing on governance structure, development strategy, organizational setup, allocation of responsibilities, separation of incompatible positions, human resources policies and incentive mechanisms, corporate culture, and social responsibility.
- Focusing on operational activities, emphasizing fundraising and usage, procurement and payment, sales and collection, production processes and cost control, asset operation and management, external investments, related party transactions, external guarantees, and R&D.
- Utilizing control measures, focusing on whether budgets are binding, whether there are disputes in contract performance, whether information systems are organically integrated with internal controls, and whether internal reports are communicated timely and effectively.
Basis for Internal Control Evaluation
The evaluation is based on the Company Law, Securities Law, Basic Norms for Enterprise Internal Control, and the Shenzhen Stock Exchange Self-Regulatory Guidelines No. 2 for the standardized operation of GEM-listed companies, among other laws and regulations.
Procedures and Methods for Internal Control Evaluation
The Company follows a risk-oriented principle, covering major units, key businesses, and matters in the scope of the internal control evaluation. The units included in the evaluation are CIMC Enric Technology Co., Ltd. and its subsidiaries, CIMC Savi Containers Service (Jiaxing) Co., Ltd. and CIMC Savi Containers Service (Lianyungang) Co., Ltd. The total assets of the evaluated units account for 100.84% of the total assets in the consolidated financial statements (Note: total assets refer to the total assets in the consolidated statements), and the total operating revenue accounts for 96.02% of the total operating revenue in the consolidated financial statements. The key businesses and matters included in the evaluation scope are: fund operation and management, procurement and payment management, sales and collection management, asset management processes, and related party transaction management.