Verification Opinion of CITIC Securities Co., Ltd. on the Self-Evaluation Report of Internal Control of Honggong Technology Co., Ltd. for 2025
Honggong Technology Co., Ltd. (hereinafter referred to as "Honggong Technology" or "the Company") has appointed CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "the Sponsor") as the sponsor for its initial public offering of shares and to undertake the corresponding continuous supervision responsibilities. In accordance with relevant laws, regulations, and normative documents such as the "Administrative Measures for Sponsoring Securities Issuance and Listing," "Shenzhen Stock Exchange GEM Listing Rules," "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange GEM," "Basic Norms for Enterprise Internal Control," and "Standards for Internal Accounting Control," CITIC Securities has conducted a verification of Honggong Technology's "2025 Internal Control Self-Evaluation Report" (hereinafter referred to as "the Evaluation Report"). The specific situation is as follows:
I. Objectives and Principles of Internal Control
(1) Objectives of Internal Control
The objective of the company's internal control is to reasonably ensure that business management is legal and compliant, assets are secure, financial reports and related information are true and complete, operational efficiency and effectiveness are improved, and to promote the company's strategic development.
(2) Principles for Establishing and Implementing Internal Control
- Comprehensiveness Principle: Internal control runs through the entire process of decision-making, execution, and supervision, covering various businesses and matters of the company and its subsidiaries.
- Materiality Principle: Internal control focuses on significant business matters and high-risk areas based on comprehensive control.
- Checks and Balances Principle: Internal control forms mutual checks and supervision in governance structure, organizational setup, and distribution of responsibilities, while also considering operational efficiency.
- Adaptability Principle: Internal control is adapted to the company's scale, business scope, competitive situation, and risk level, and is adjusted in a timely manner as circumstances change.
- Cost-Benefit Principle: Internal control weighs the implementation costs against expected benefits to achieve effective control at an appropriate cost.
II. Establishment, Improvement, and Operation of Internal Control
The company continuously improves its corporate governance structure, forming a working mechanism where the shareholders' meeting, board of directors, audit committee, and management each perform their duties and responsibilities, and mutually check and supervise each other. The company clearly defines the objectives, responsibilities, and authorities of each department, establishes and improves the authorization, supervision, and accountability system, ensuring mutual checks and supervision among departments and positions.
The internal control system of the company consists of the internal environment, risk assessment, control activities, and internal supervision. The specifics are as follows:
(1) Internal Environment
The internal environment is the foundation for the company to implement internal control, including aspects such as corporate governance structure, internal management organization, distribution of responsibilities, human resources policies, and corporate culture.