Our company has established an Audit Department under the Board of Directors to assist the Board and management in examining and evaluating the effectiveness of internal control systems, measuring the effectiveness and efficiency of company operations, the reliability, timeliness, and transparency of reporting, as well as compliance with relevant laws and regulations. The Audit Department timely provides improvement recommendations to reasonably ensure the continuous effective implementation of internal control systems and serves as a basis for reviewing and amending internal control systems.

The Audit Department has established a risk-oriented internal audit system and carries out various audit operations according to the annual audit plan approved by the Board of Directors. Each year, the Audit Department reviews the company’s internal control self-assessment report along with the improvements made in response to internal control deficiencies and abnormalities identified during audits, providing a basis for the Board of Directors and the CEO to evaluate the overall effectiveness of the internal control system and issue an internal control system statement.

Depending on business needs, management requirements, and relevant laws and regulations, the Audit Department appoints one Internal Audit Manager and an appropriate number of dedicated internal audit staff. The appointment and dismissal of the Internal Audit Manager require approval from the Audit Committee and resolution from the Board of Directors.