Important Statement
According to the regulations of the enterprise internal control standard system, establishing, improving, and effectively implementing internal controls, evaluating their effectiveness, and truthfully disclosing the internal control evaluation report is the responsibility of the company's board of directors. The audit committee of the board is responsible for supervising the effective implementation of internal controls and self-evaluation. The management is responsible for organizing and leading the daily operation of internal controls. The board of directors, audit committee, and senior management ensure that the content of this report does not contain any false records, misleading statements, or significant omissions, and bear individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report. The goal of the company's internal control is to ensure legal compliance in operations, asset safety, truthful and complete financial reporting and related information, improve operational efficiency and effectiveness, and promote the achievement of development strategies. Due to inherent limitations in internal controls, they can only provide reasonable assurance in achieving the above goals. Additionally, changes in circumstances may render internal controls inappropriate or reduce adherence to control policies and procedures, making it risky to infer the future effectiveness of internal controls based on evaluation results.
Internal Control Evaluation Conclusion
Based on the identification of significant deficiencies in internal controls over financial reporting, there are no significant deficiencies as of the evaluation report's benchmark date. The board believes that the company has maintained effective internal controls over financial reporting in all material respects in accordance with the requirements of the enterprise internal control standard system and related regulations. Based on the identification of significant deficiencies in non-financial reporting internal controls, the company has not identified any significant deficiencies as of the evaluation report's benchmark date. No factors affecting the effectiveness of internal control evaluation conclusions have occurred between the benchmark date and the issuance date of the evaluation report.
Internal Control Evaluation Work Situation
The board of directors is the highest decision-making body for the company's internal control evaluation, responsible for organizing, leading, and supervising the evaluation work, listening to evaluation reports, approving rectification opinions for internal control deficiencies, and approving the external disclosure of the evaluation report. The audit committee is responsible for reviewing the company's internal controls, supervising their effective implementation and evaluation, and coordinating internal control audits and other related matters. The board of directors authorizes the audit supervision department to organize and implement the internal control evaluation work. The audit supervision department, based on principles of comprehensiveness, materiality, and objectivity, formulates evaluation work plans and conducts evaluations. The management and relevant departments actively support and cooperate with the internal control evaluation work and accept inspections of the evaluation work. The audit supervision department prepares the internal control evaluation report based on the evaluation work situation and in conjunction with daily supervision and special supervision, which is reviewed and approved by the audit committee before being submitted to the board of directors for approval.