Internal Audit System
(Revised March 2026)
Shandong Hongqiao Aluminum Industry Holding Co Ltd
March 2026
Table of Contents
Chapter 1 General Provisions 1 Chapter 2 Internal Audit Department and Internal Auditors 1 Chapter 3 Responsibilities of the Internal Audit Department 2 Chapter 4 Main Tasks of Audit Work 3 Chapter 5 Audit Procedures 5 Chapter 6 Rewards and Punishments 7 Chapter 7 Supplementary Provisions 7
Chapter 1 General Provisions
Article 1 To standardize and ensure the internal audit supervision of Shandong Hongqiao Aluminum Industry Holding Co Ltd (hereinafter referred to as "the Company"), improve audit work quality, and achieve regular and institutionalized internal audit, thereby leveraging the role of internal audit in strengthening internal control management, promoting enterprise economic management, and enhancing economic benefits, this system is formulated in accordance with the "Audit Law of the People's Republic of China," "Company Law of the People's Republic of China," "Listing Rules of the Shenzhen Stock Exchange," "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guide No. 1 – Standardized Operation of Main Board Listed Companies," "Listed Company Supervision Guide No. 8 – Regulatory Requirements for Listed Company Fund Transactions and External Guarantees," and other relevant laws, regulations, rules, normative documents, and the "Articles of Association of Shandong Hongqiao Aluminum Industry Holding Co Ltd" (hereinafter referred to as the "Articles of Association"), combined with the Company's actual situation.
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 is an evaluation activity conducted by the staff of the Company's internal audit department on the effectiveness of internal control and risk management, the truthfulness and completeness of financial information, and the efficiency and effectiveness of operational activities. It includes supervising the operation of the audited entity's internal control system, inspecting the audited entity's accounting books and related assets, supervising the audited entity's final accounts and financial receipts and expenditures, and evaluating the benefits of major economic activities.
Chapter 2 Audit Department and Auditors
Article 4 The Company's Board of Directors shall establish an Audit Committee and an internal audit system. The Company's internal audit department shall be led by the Board of Directors and shall be responsible for internal audit supervision of the Company's financial management and the establishment and implementation of internal control systems. The internal audit department shall be responsible to the Audit Committee and report its work to the Audit Committee. The internal audit department shall maintain independence and shall not be placed under the leadership of the finance department or share office space with the finance department.
Article 5 The internal audit department shall be composed of full-time auditors. It shall have one Internal Audit Department Manager, nominated by the Audit Committee and appointed or removed by the Board of Directors. The Internal Audit Department Manager shall be responsible to the Audit Committee and report work to the Audit Committee. The Audit Committee shall participate in the performance appraisal of the Internal Audit Department Manager.
Article 6 Internal auditors shall exercise their powers in accordance with the law and shall be protected by laws and the Company's rules and regulations. No department or individual shall refuse or obstruct internal auditors from performing their duties, nor shall they retaliate against internal auditors.
Article 7 Internal auditors shall possess professional knowledge and skills in auditing, accounting, and economic management that are commensurate with their audit work.
Article 8 Internal auditors shall adhere to the principle of seeking truth from facts, be loyal to their duties, be objective and fair, be incorruptible and self-disciplined, and maintain confidentiality. They shall not abuse their powers, engage in fraudulent practices, or neglect their duties.