Beijing Haochuang Ruitong Electric Equipment Co., Ltd.
2025 Annual Internal Control Evaluation Report
To all shareholders of Beijing Haochuang Ruitong Electric Equipment Co., Ltd.:
In accordance with the provisions of the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (hereinafter referred to as the "Enterprise Internal Control Normative System"), combined with the internal control system and evaluation methods of Beijing Haochuang Ruitong Electric Equipment Co., Ltd. (hereinafter referred to as the "Company"), we have evaluated the effectiveness of the Company's internal controls as of December 31, 2025 (hereinafter referred to as the "Internal Control Evaluation Report Benchmark Date") based on daily supervision and special supervision of internal controls.
1. Important Statement
According to the provisions of the Enterprise Internal Control Normative System, it is the responsibility of the Company's Board of Directors to establish, improve, and effectively implement internal controls, evaluate their effectiveness and compliance, and truthfully disclose the internal control evaluation report. The Audit Committee supervises the establishment and implementation of internal controls by the Board of Directors, while the management is responsible for organizing and leading the daily operation of internal controls. The Company's Board of Directors and all directors and senior management personnel guarantee the truthfulness, accuracy, and completeness of this report, ensuring there are no false records, misleading statements, or significant omissions, and they bear individual and joint legal responsibility for the report's content. The goal of the Company's internal controls is to reasonably ensure legal compliance in operations, asset safety, and the authenticity and completeness of financial reports and related information, thereby improving operational efficiency and effectiveness and promoting the Company’s strategic development. Due to inherent limitations in internal controls, they can only provide reasonable assurance of achieving these objectives. Additionally, changes in circumstances may lead to imperfections in internal controls, reducing compliance with control policies and procedures, and inferring the future effectiveness of internal controls based on evaluation results carries certain risks.
2. Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in financial reporting internal controls, as of the Internal Control Evaluation Report Benchmark Date, the Company has no significant deficiencies 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 Normative System and related regulations. Based on the identification of significant deficiencies in non-financial reporting internal controls, as of the Internal Control Evaluation Report Benchmark Date, the Company has not identified any significant deficiencies in non-financial reporting internal controls. No factors affecting the evaluation conclusion of internal control effectiveness have occurred between the Internal Control Evaluation Report Benchmark Date and the issuance date of the internal control evaluation report.
3. Internal Control Evaluation Work Situation
(1) Basis for Internal Control Evaluation
This evaluation report aims to evaluate the effectiveness of the design and operation of the Company's internal controls as of December 31, 2025, based on the requirements of the "Basic Norms for Enterprise Internal Control," combined with the Company's internal management system and evaluation methods, and based on daily supervision and special supervision of internal controls.