Southern Power Grid Digital Grid Research Institute Co., Ltd.
2025 Internal Control Self-Assessment Report
To all shareholders of Southern Power Grid Digital Grid Research Institute Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control," "Guidelines for Internal Control of Listed Companies," and other relevant laws and regulations (hereinafter referred to as "Internal Control Norms"), Southern Power Grid Digital Grid Research Institute Co., Ltd. (hereinafter referred to as "the Company") has organized an evaluation of the effectiveness of its internal control as of December 31, 2025 (the benchmark date for the internal control evaluation report) based on daily supervision and special supervision of internal control.
Important Statement
According to the relevant provisions of the Internal Control Norms, establishing, improving, and effectively implementing internal control, evaluating its effectiveness, and truthfully disclosing the internal control evaluation report is the responsibility of the Company's board of directors. The Audit and Risk Committee supervises the establishment and implementation of internal control by the board. The management is responsible for organizing and leading the daily operation of internal control. The Company's board of directors, Audit and Risk 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 goal of the Company's internal control is to reasonably ensure that business management is legal and compliant, assets are secure, financial reporting and related information are true and complete, operational efficiency and effectiveness are improved, and the development strategy is promoted. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving the above objectives. Furthermore, changes in circumstances may render internal control inappropriate or reduce compliance with control policies and procedures, making it risky to infer the future effectiveness of internal control based on evaluation results.
Internal Control Evaluation Conclusion
Based on a comprehensive assessment of the Company's internal control system, the board believes that as of December 31, 2025, the Company has established a relatively complete internal control system in accordance with the requirements of the enterprise internal control norms, which has been effectively implemented in major business and management areas. During the reporting period, the Company did not identify any significant internal control deficiencies related to financial reporting and non-financial reporting. No factors affecting the conclusion of the internal control effectiveness evaluation occurred between the benchmark date of the internal control evaluation report and the issuance date of the report.
Internal Control Evaluation Work Situation
(1) Scope of Internal Control Evaluation
The Company determined the main units, businesses, and high-risk areas included in the evaluation scope based on a risk-oriented principle.
- The main units included in the evaluation scope comprise the parent company and all subsidiaries included in the consolidated scope, with the total assets of the evaluated units accounting for 100% of the total assets in the Company's consolidated financial statements, and the total operating income accounting for 100% of the total operating income in the Company's consolidated financial statements.
- The main businesses included in the evaluation scope comprise corporate governance and organizational structure, human resources, social responsibility, corporate culture, financial activities, cost accounting and expense management, sales business, asset management, inventory and warehousing management, research and development, procurement management and business outsourcing, financial reporting, information communication and information systems, and information disclosure. The specific situation is as follows: