Nai Bai Chuan New Energy Co., Ltd.
2025 Annual Internal Control Self-Evaluation Report
To all shareholders of Nai Bai Chuan New Energy Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (collectively referred to as the "Enterprise Internal Control Norms System"), and combined with the company's internal control system and evaluation methods, based on daily supervision and special supervision of internal controls, we have evaluated the effectiveness of the company's internal controls as of December 31, 2025 (the "Internal Control Self-Evaluation Report Base Date").
I. Important Statement
In accordance with the requirements of the Enterprise Internal Control Norms System, the establishment and sound implementation of internal controls, and the evaluation of their effectiveness, as well as the truthful disclosure in the Internal Control Self-Evaluation Report, are the responsibilities of the company's Board of Directors. The Audit Committee supervises the establishment and implementation of the internal control system. Management is responsible for organizing and leading the daily operation of the company's internal controls. The company's Board of Directors, directors, and senior management guarantee that the content of this report does not contain any false records, misleading statements, or significant omissions, and they bear individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report's content.
The objective of the company's internal control is to provide reasonable assurance that the company's business management is legal and compliant, assets are secure, financial reports and related information are true and complete, operating efficiency and effectiveness are improved, and the company's development strategies are achieved. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the achievement of these objectives. Furthermore, due to changes in circumstances that may render internal controls inappropriate, or a decrease in the degree of compliance with control policies and procedures, there is a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control self-evaluation.
II. Conclusion of Internal Control Self-Evaluation
Based on the determination of material weaknesses in the company's financial reporting internal controls, as of the Internal Control Self-Evaluation Report Base Date, there were no material weaknesses in financial reporting internal controls. The Board of Directors believes that the company has maintained effective financial reporting internal controls in all material respects in accordance with the requirements of the Enterprise Internal Control Norms System and relevant regulations.
Based on the determination of material weaknesses in the company's non-financial reporting internal controls, as of the Internal Control Self-Evaluation Report Base Date, the company found no material weaknesses in non-financial reporting internal controls.
Between the Internal Control Self-Evaluation Report Base Date and the date of issuance of the Internal Control Self-Evaluation Report, no factors have occurred that affect the conclusion of the internal control effectiveness evaluation.
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III. Internal Control Self-Evaluation Work
(I) Scope of Internal Control Self-Evaluation
The scope of the internal control self-evaluation covers various businesses and matters of the company and its subsidiaries, as well as high-risk areas. The entities included in the evaluation scope are: Nai Bai Chuan New Energy Co., Ltd., Ma'anshan Nai Bai Chuan Heat Exchanger Co., Ltd., Nai Bai Chuan (Chuzhou) New Energy Technology Co., Ltd., Nai Bai Chuan (Tai Shun) New Energy Co., Ltd., Nai Bai Chuan (Shanghai) Environmental Protection Technology Co., Ltd., and Nai Bai Chuan (Meishan) New Energy Technology Co., Ltd.
The total assets of the entities included in the evaluation scope account for 100% of the company's consolidated financial statement assets, and the operating revenue accounts for 100% of the company's consolidated financial statement operating revenue.