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 assessment report is the responsibility of the company's board of directors. The audit committee supervises the establishment and implementation of internal controls by the board. 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 this report's content. The goal of the company's internal control is to reasonably ensure that business management is legal and compliant, assets are secure, financial reports and related information are true and complete, operational efficiency and effectiveness are improved, and the development strategy is promoted. Due to the inherent limitations of internal controls, they can only provide reasonable assurance of achieving the above objectives. Furthermore, changes in circumstances may render internal controls inappropriate or reduce compliance with control policies and procedures, making it risky to infer the future effectiveness of internal controls based on assessment results.
Internal Control Assessment Conclusion
Based on the identification of significant deficiencies in financial reporting internal controls, as of the internal control assessment report benchmark date, there are no significant deficiencies in financial reporting internal controls. The board believes that the company has maintained effective financial reporting internal controls in all material aspects 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, as of the internal control assessment report benchmark date, the company has not identified any significant deficiencies in non-financial reporting internal controls. No factors affecting the effectiveness of internal control assessment conclusions have occurred between the internal control assessment report benchmark date and the issuance date of the internal control assessment report.
Internal Control Assessment Work Situation
(1) Scope of Internal Control Assessment
The company determines the main businesses and matters included in the assessment scope and high-risk areas based on a risk-oriented principle. The main units included in the assessment scope are the company and its holding subsidiaries. The total assets of the included units account for 100% of the total assets in the consolidated financial statements, and the total operating income accounts for 100% of the total operating income in the consolidated financial statements. The main businesses and matters included in the assessment scope include: internal environment, risk assessment, information and communication, supervision and control, and internal control activities.