Xiang Cai Co., Ltd. Releases 2025 Internal Control Evaluation Report, Financial Reporting Internal Controls Rated as Effective

Sina Finance Data: Xiangcai Securities Co., Ltd. released the 2025 Internal Control Evaluation Report on March 20, 2026. The report’s baseline date is December 31, 2025. Based on the evaluation conclusion, the company had no material weaknesses in internal financial reporting controls as of the baseline date. The board of directors believes the company has maintained effective internal financial reporting controls in all material aspects in accordance with relevant regulations. Additionally, no significant deficiencies were found in non-financial reporting internal controls.

The scope of this internal control evaluation covers the company and its major subsidiaries, including Xiangcai Securities Co., Ltd., whose total assets account for 99.49% of the consolidated total assets, and total operating income accounts for 93.82% of the consolidated operating income. The evaluation focused on high-risk areas such as corporate governance, financial management, human resources management, subsidiary control, financing management, and legal disputes.

The report discloses that the standards for identifying internal control deficiencies are consistent with those of previous years. For financial reporting internal controls, quantitative standards are based on the proportion of misstatements relative to total assets, while qualitative standards focus on issues such as senior management fraud and ineffective audit supervision. The identification of deficiencies in non-financial internal controls considers factors like direct economic losses relative to net assets, illegal activities, and decision-making procedures.

The company states that it has continuously updated internal control procedures and strengthened supervision and inspection this year, achieving ongoing improvements in internal control management. Moving forward, it will align with its development strategy to further standardize business processes, improve the reasonableness of internal control design, and enhance the effectiveness of implementation to strengthen risk prevention capabilities and promote healthy, steady development. The report also confirms that the internal control audit opinion is consistent with the company’s own evaluation conclusion.