Zheshang Securities Co., Ltd. Review Opinion on the 2025 Internal Control Evaluation Report of Naibai Chuan New Energy Co., Ltd.
Zheshang Securities Co., Ltd. (hereinafter referred to as "Zheshang Securities" or "the Sponsor") is the sponsor for the continuous supervision of Naibai Chuan New Energy Co., Ltd. (hereinafter referred to as "Naibai Chuan" or "the Company") for its initial public offering of shares and listing on the ChiNext market. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "ChiNext Stock Listing Rules of the Shenzhen Stock Exchange," the "ChiNext Listed Company Self-Regulatory Guidelines No. 2 - Normative Operation of ChiNext Listed Companies," and the "ChiNext Listed Company Self-Regulatory Guidelines No. 13 - Sponsorship Business" and other relevant regulations, we have reviewed the "2025 Internal Control Evaluation Report of Naibai Chuan New Energy Co., Ltd." and hereby express our review opinions as follows:
I. Important Statement
In accordance with the requirements of the enterprise internal control standard system, establishing and improving internal control, evaluating its effectiveness, and truthfully disclosing the internal control 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 control. 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 major omissions, and they bear individual and joint legal responsibility for the authenticity, accuracy, and completeness of the report's content.
The objective of the company's internal control is to reasonably guarantee the legality and compliance of the company's operations and management, the safety of assets, and the truthfulness and completeness of financial reports and related information, to improve operational efficiency and effectiveness, and to promote the realization of the company's development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the achievement of these objectives. In addition, due to changes in circumstances that may render internal control 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 control based on the results of the internal control evaluation.
II. Conclusion of Internal Control Evaluation
Based on the identification of major deficiencies in the company's financial reporting internal control, there were no major deficiencies in financial reporting internal control as of the base date of the internal control evaluation report. 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 standard system and relevant regulations.
Based on the identification of major deficiencies in the company's non-financial reporting internal control, no major deficiencies in non-financial reporting internal control were found as of the base date of the internal control evaluation report.
Between the base date of the internal control evaluation report and the issuance date of the internal control evaluation report, no factors affecting the conclusion of the internal control effectiveness evaluation occurred.
III. Internal Control Evaluation Work
(I) Scope of Internal Control Evaluation
The scope of the internal control evaluation covers various businesses and matters of the company and its subsidiaries, as well as high-risk areas. The units included in the evaluation scope are: Naibai Chuan New Energy Co., Ltd., Ma'anshan Naibai Chuan Heat Exchanger Co., Ltd., Naibai Chuan (Chuzhou) New Energy Technology Co., Ltd., Naibai Chuan (Taishun) New Energy Co., Ltd., Naibai Chuan (Shanghai) Environmental Protection Technology Co., Ltd., and Naibai Chuan (Meishan) New Energy Technology Co., Ltd.