Company code: 688188 Company abbreviation: Baichu Electronics

Shanghai Baichu Electronic Technology Co., Ltd

2024 Internal Control Evaluation Report

All shareholders of Shanghai Bochu Electronic Technology Co., Ltd.:

In accordance with the provisions of the Basic Standards for Enterprise Internal Control and its supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the "Enterprise Internal Control Specification System"), combined with the Company's (hereinafter referred to as the Company's) internal control system and evaluation methods, and on the basis of daily supervision and special supervision of internal control, we evaluated the effectiveness of the Company's internal control as of December 31, 2024 (the reference date of the internal control evaluation report). I. Important Notices

It is the responsibility of the board of directors of the company to establish, improve and effectively implement internal control, evaluate its effectiveness, and truthfully disclose the internal control evaluation report in accordance with the provisions of the enterprise's internal control system. The Supervisory Board supervises the establishment and implementation of internal controls by the Board of Directors. Managers are responsible for organizing and leading the day-to-day operation of the company's internal controls. The Board of Directors, the Board of Supervisors, the directors, supervisors and senior management of the Company guarantee that there are no false records, misleading statements or material omissions in the content of this report, and assume individual and joint legal liability for the authenticity, accuracy and completeness of the content of the report.

The goal of the company's internal control is to reasonably ensure the legal compliance of operation and management, asset security, true and complete financial reports and related information, improve operational efficiency and effectiveness, and promote the realization of development strategy. Due to the inherent limitations of internal controls, it can only provide reasonable assurance that the above objectives will be achieved. In addition, there is a risk that the effectiveness of future internal controls will be inferred based on the results of internal control evaluations because changes in circumstances may lead to inappropriate internal controls or reduced compliance with control policies and procedures.

Conclusions of the internal control evaluation

1. Whether the company has any material deficiencies in the internal control over financial reporting on the reference date of the internal control evaluation report

□ Yes √ No

2. Conclusion of the evaluation of internal control over financial reporting

√ valid □ invalid

According to the identification of material deficiencies in the Company's internal control over financial reporting, there were no material deficiencies in the internal control over financial reporting as of the reference date of the internal control evaluation report, and the Board of Directors believes that the Company has maintained effective internal control over financial reporting in all material respects in accordance with the requirements of the standard system of internal control of the Company and relevant regulations.

3. Whether material deficiencies in internal control over non-financial reporting were found

□ Yes √ No

According to the identification of material deficiencies in the Company's internal control over non-financial reporting, the Company did not find any material deficiencies in the internal control over non-financial reporting as of the reference date of the internal control evaluation report.

4. Factors influencing the conclusion of the internal control effectiveness evaluation between the benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report

There were no factors affecting the conclusion of the internal control effectiveness evaluation between the benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report.

5. Whether the internal control audit opinion is consistent with the company's evaluation conclusion on the effectiveness of internal control over financial reporting

√ Yes □ No

6. Whether the disclosure of material deficiencies in the internal control audit report of non-financial reporting is consistent with the disclosure in the company's internal control evaluation report√ and whether it is □ or no

Evaluation of internal control

(1) Scope of internal control evaluation

In accordance with the risk-oriented principle, the company determines the main units, businesses and matters included in the evaluation scope, as well as high-risk areas.

1. The main units included in the evaluation scope include: Shanghai Baichu Electronic Technology Co., Ltd. and all its holding companies

2. Proportion of units included in the scope of evaluation:

Indicator Proportion (%)

The ratio of the total assets of the units included in the evaluation scope to the total assets of the company's consolidated financial statements is 100.00

The ratio of the total operating income of the units included in the evaluation scope to the total operating income of the company's consolidated financial statements is 100.00

3. The main operations and matters to be included in the scope of the evaluation include:

Corporate governance and organizational structure, establishment and improvement of internal control system, human resource management, corporate culture, sales and collection, procurement and payment, inventory management, financial reporting, R&D management, asset management, information system management, related party transactions, external guarantees, use of raised funds, information disclosure, etc.

4. High-risk areas to focus on include:

Procurement business, sales business, asset management, use of raised funds, etc

5. Whether the above-mentioned units, businesses and matters included in the scope of evaluation, as well as high-risk areas, cover the main aspects of the company's operation and management, and whether they exist

in major omissions

□ Yes √ No

6. Whether there is a statutory exemption

□ Yes √ No

7. Other Notes

not

(2) The basis for internal control evaluation and the criteria for identifying internal control deficiencies

The company organizes and carries out internal control evaluation in accordance with the enterprise internal control standard system and other internal control supervision requirements.

1. Whether the specific criteria for identifying internal control deficiencies have been adjusted from previous years

□ Yes √ No

The board of directors of the company shall identify major defects, important defects and general defects in accordance with the requirements of the company's internal control system, combined with the company's regulations

model, industry characteristics, risk appetite and risk tolerance, etc., distinguish between internal control over financial reporting and internal control over non-financial reporting, and study and determine the specific criteria for identifying internal control deficiencies applicable to the Company, which are consistent with those of previous years.

2. Criteria for identifying deficiencies in internal control over financial reporting

The quantitative criteria for the evaluation of internal control deficiencies in financial reporting determined by the Company are as follows:

Indicator Name Quantitative Standard for Major Defects Quantitative Standard for Important Defects Quantitative Standard for General Defects

Assets, liabilities and equity 0.83% of total assets < misstatement 0.42% of total assets ≦ misstatement 0.42% of total assets > misstatement omission

Class Understated Amount The underreported amount ≦ the reported amount of the total asset

0.83%

Profit and loss 2.82% of total revenue< misstatement 1.41% of total revenue≦ misstatement 1.41% of total revenue> misstatement

Underreported Amount The underreported amount ≦ the underreported amount of gross revenue

2.82%

Illustrate:

not

The qualitative criteria for the evaluation of internal control deficiencies in financial reporting determined by the Company are as follows:

Nature of the defect Qualitative criteria

Major defects 1. Fraud among directors, supervisors and senior executives;

2. Failure of the internal control environment;

3. The disclosed corporate reports and accounting information are seriously inaccurate and unfair;

4. Due to serious violations of accounting standards and industry financial systems, the state authorities have been notified and notified within the scope of the industry

Punish.

1. There are material uncertainties and unfairness in the disclosed financial reports and accounting information;

2. For violating the accounting standards of enterprises and the financial system of the industry, he was notified and punished by the group company.

General deficiencies Deficiencies in internal control over financial reporting other than material deficiencies and material deficiencies.

Illustrate:

not

3. Criteria for identifying deficiencies in internal control over non-financial reporting

The quantitative criteria for the evaluation of internal control deficiencies in non-financial reporting determined by the Company are as follows:

Indicator Name Quantitative Standard for Major Defects Quantitative Standard for Important Defects Quantitative Standard for General Defects

Direct loss 0.83% of total assets < misstatement 0.42% of total assets≦ 0.42% of total assets > misstatement omission

Understated Amount Understated Amount ≦ Reported Amount of Total Assets

0.83%

Illustrate:

not

The qualitative criteria for the evaluation of internal control deficiencies in non-financial reporting determined by the Company are as follows:

Nature of the defect Qualitative criteria

Major defects 1. Seriously deviate from the company's strategy or business objectives, which has a serious negative impact on the realization of the strategy or business objectives;

2. The unit fails to effectively comply with national laws and regulations, and is or is very likely to be notified and punished by the state;

3. Serious product quality problems and serious consequences;

4. Major deficiencies in internal control have not been rectified.

1. Deviating from the company's strategy or business objectives, which has a great negative impact on the realization of the strategy or business objectives;

2. The unit fails to effectively comply with national laws and regulations, and is or is likely to be notified and punished by the group company;

3. There are serious product quality problems and serious consequences;

4. Important or general deficiencies in internal control have not been rectified.

General deficiencies Deficiencies in internal control over non-financial reporting other than material deficiencies and material deficiencies.

Illustrate:

not

(3) Identification and rectification of internal control deficiencies

1. Identification and rectification of deficiencies in internal control over financial reporting

1.1. Material Defects

Whether the company had any material deficiencies in internal control over financial reporting during the reporting period

□ Yes √ No

1.2. Important Defects

Whether the company had any significant deficiencies in internal control over financial reporting during the reporting period

□ Yes √ No

1.3. General Defects

not

1.4. After the above-mentioned rectification, on the base date of the internal control evaluation report, whether the company has any material internal control over financial reporting that has not completed the rectification

flaw

□ Yes √ No

1.5. After the above-mentioned rectification, it is important that the Company has no internal control over financial reporting that has not been rectified as of the reference date of the internal control evaluation report

flaw

□ Yes √ No

2. Identification and rectification of internal control deficiencies in non-financial reporting

2.1. Material Defects

Whether the company found any material deficiencies in internal control over non-financial reporting during the reporting period

□ Yes √ No

2.2. Material Defects

Whether the Company found any material deficiencies in internal control over non-financial reporting during the reporting period

□ Yes √ No

2.3. General Defects

not

2.4. After the above-mentioned rectification, on the base date of the internal control evaluation report, whether the company found that the internal control over non-financial reporting that had not completed the rectification was heavy

Big flaws

□ Yes √ No

2.5. After the above-mentioned rectification, on the reference date of the internal control evaluation report, whether the company found that the internal control over non-financial reporting that had not completed the rectification was heavy

To be defective

□ Yes √ No

4. Explanation of other major matters related to internal control

1. Rectification of internal control deficiencies in the previous year

□ Applicable √ Not applicable

2. The operation of internal control in the current year and the direction of improvement in the next year

√ Applicable □ Not applicable

In 2024, the Company further revised and improved its internal control system, and the overall internal control system was operating well, and no material or important deficiencies were found in financial or non-financial reports. In 2025, the Company will continue to strictly implement the basic specifications and supporting guidelines for internal control, strengthen the awareness of internal control in daily management, optimize the internal control environment, and improve the level of internal control management through pre-prevention and identification, in-process control, post-event supervision and feedback correction of various risks, effectively prevent various risks, ensure the sustainable and healthy development of the Company, and promote the realization of the Company's strategic objectives. 3. Explanation of other major matters

□ Applicable √ Not applicable

Chairman of the Board of Directors (authorized by the Board of Directors): Tang Ye

Shanghai Baichu Electronic Technology Co., Ltd

April 2, 2025