Internal Audit System
Chapter 1 General Provisions
Article 1 To regulate the internal audit work of Shanxi Coking Coal Energy Group Co., Ltd. (hereinafter referred to as the "Company"), strengthen internal audit supervision, clarify the responsibilities and powers of internal audit, and effectively leverage the important role of internal audit in preventing operational risks, improving economic efficiency, and ensuring the achievement of strategic goals, this System is formulated in accordance with the "Audit Law of the People's Republic of China," the "Regulations of the National Audit Office on Internal Audit Work," the "Guidelines on Corporate Governance of Listed Companies," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant laws, regulations, normative documents, and the "Articles of Association" of the Company, combined with the actual situation of the Company.
Article 2 Internal audit as referred to in this System means the activities of the internal audit institution independently and objectively supervising, evaluating, and advising on the financial revenues and expenditures, economic activities, internal controls, and risk management of the Company and its subordinate branches and subsidiaries (hereinafter referred to as "Affiliated Units") to promote the Company's improved governance and goal achievement.
Article 3 The internal audit institution as referred to in this System means the internal department of the Company and its Affiliated Units responsible for audit supervision.
Article 4 Internal control as referred to in this System means the process by which the Company's board of directors, audit committee, senior management, and other relevant personnel provide reasonable assurance for the following objectives: (1) Compliance with national laws, regulations, rules, and other relevant provisions; (2) Improving the efficiency and effectiveness of the Company's operations; (3) Ensuring the safety of the Company's assets; (4) Ensuring the truthfulness, accuracy, completeness, and fairness of the Company's information disclosure.
Article 5 The Company and its Affiliated Units shall implement internal audit supervision, adhere to the Party's leadership over audit work, and establish a centralized, unified, comprehensive, and authoritative and efficient audit supervision system.
Chapter 2 Internal Audit Institutions and Personnel
Article 6 Internal audit work shall be managed uniformly and supervised at different levels. The Risk Prevention and Control Department is the supervisory and management department for the Company's internal audit work, responsible for guiding, supervising, and evaluating the internal audit work of the Company and its Affiliated Units. Internal audit institutions established by each Affiliated Unit are responsible for the audit supervision and management of their respective units and their subordinate units, and shall accept business guidance and supervision from higher-level internal audit institutions.
Article 7 The Company's internal audit institution shall be responsible to the Board of Directors and report to the Audit Committee. In the process of inspecting and supervising the Company's business activities, risk management, internal controls, and financial information, the Company's internal audit institution shall accept the supervision and guidance of the Audit Committee.