Yuan Chuang Technology Co., Ltd.
Internal Audit System
Chapter 1: General Provisions
Article 1: To strengthen corporate management and improve economic performance, in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Audit Law," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 - Normative Operation of Main Board Listed Companies" (hereinafter referred to as the "Normative Operation"), and the "Articles of Association," and in conjunction with the actual development needs of Yuan Chuang Technology Co., Ltd. (hereinafter referred to as the "Company" or "this Company"), this System is hereby formulated.
Article 2: The audited entities referred to in this System are all departments of the Company, holding subsidiaries, branches, and relevant responsible personnel.
Article 3: Internal audit as referred to in this System means an evaluation activity conducted by internal departments or personnel of the Company to assess the effectiveness of internal controls and risk management, the truthfulness and completeness of financial information, and the efficiency and effectiveness of business operations. It includes supervising the operation of the internal control system of the audited entities, inspecting the accounting books and related assets of the audited entities, supervising the execution of budgets and final accounts and financial receipts and expenditures of the audited entities, and evaluating the effectiveness of major economic activities.