Shandong ChaoSheng Ultrasonic Instrument Research Institute Co., Ltd. All Shareholders:
Pursuant to the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "GEM Listed Company Self-Regulatory Management Guidelines No. 2 - Norms for Operation of GEM Listed Companies (2025 Revision)", the "Basic Norms for Enterprise Internal Control" and their supporting guidelines, and other internal control regulatory requirements (hereinafter referred to as the "Enterprise Internal Control Norms System"), combined with the internal control system and evaluation methods of Shandong ChaoSheng Ultrasonic Instrument Research Institute Co., Ltd. (hereinafter referred to as the "Company"), based on the daily supervision and special supervision of internal control, we have evaluated the effectiveness of the Company's internal control as of December 31, 2025 (hereinafter referred to as the "Internal Control Evaluation Report Base Date").
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Norms System, it is the responsibility of the Company's Board of Directors to establish, improve, and effectively implement internal control, evaluate its effectiveness, and disclose it truthfully. The Audit Committee supervises the establishment and implementation of internal control by the Board of Directors. The management is responsible for organizing and leading the daily operation of the Company's internal control. The Company's Board of Directors, Audit Committee, Directors, and Senior Management guarantee that the content of this report is free from any false records, misleading statements, or major omissions, and assume individual and joint legal responsibility for the authenticity, accuracy, and completeness of the report.
The objective of the Company's internal control is to reasonably ensure that business operations are legal and compliant, assets are safe, financial reports and related information are true and complete, and to improve operational efficiency and effectiveness, thereby promoting the achievement of development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the achievement of the above objectives. In addition, due to changes in circumstances, internal control may become inappropriate, or the degree of compliance with control policies and procedures may decrease. Therefore, inferring the effectiveness of future internal control based on the results of the internal control evaluation has certain risks.
II. Conclusion of Internal Control Evaluation
Based on the determination of major deficiencies in the Company's financial reporting internal control, as of the Internal Control Evaluation Report Base Date, the Company has no major deficiencies in financial reporting internal control. The Board of Directors believes that the Company has maintained effective financial reporting internal control in all material aspects in accordance with the requirements of the Enterprise Internal Control Norms System and relevant regulations.
Based on the determination of major deficiencies in the Company's non-financial reporting internal control, as of the Internal Control Evaluation Report Base Date, the Company has not found any major deficiencies in non-financial reporting internal control.
No factors have occurred between the Internal Control Evaluation Report Base Date and the date of issuance of the Internal Control Evaluation Report that have affected the conclusion on the effectiveness of internal control.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation