Internal Audit

The internal audit is an independent unit, reporting to the Board of Directors, and is staffed with one full-time audit chief and an appropriate number of internal audit personnel. The appointment and dismissal of the audit chief are approved by the Board of Directors, while the appointment, dismissal, performance evaluation, and remuneration of internal audit personnel are submitted by the audit chief to the Chairman for approval.

The Company has established an internal control system in accordance with laws and regulations. The internal audit department has formulated detailed implementation rules based on this system to implement and measure the effectiveness and compliance of existing systems, including those of subsidiaries.

The Company's audit operations are carried out according to the audit plan approved by the Board of Directors. This plan is formulated based on risk assessment results, and special audits are conducted as needed. Audits are reported monthly or as necessary to the Chairman and independent directors, and the auditors attend Board meetings to report.

The internal audit personnel report the audit results of various operations to management to ensure they are aware of existing or potential deficiencies and the need for improvement. They also review the self-assessment reports of the Company's various units and subsidiaries, which serve as the primary basis for the Board of Directors to assess the overall effectiveness of the internal control system and issue the internal control system statement.