Operation of the Board of Directors

The company's internal audit is an independent unit directly under the board of directors. The appointment and removal of the internal audit director is subject to the resolution of the audit committee and the board of directors.

The company's annual audit plan is based on the "Guidelines for the Management of Internal Control Systems for Publicly Issued Companies", which includes regular audit projects and annual audit projects planned based on the company's operating objectives, risk assessment results and legal compliance needs assessment, covering all transaction cycles, important management operating methods and subsidiaries.

The responsibilities of the internal audit unit are not limited to fraud prevention, compliance testing, and detecting process weaknesses that can be improved. They also include auditing and evaluating the company's budget, finance, business, operating performance, and internal control systems to fully utilize company resources, assist management in fulfilling their responsibilities, and improve operational integration efficiency. From the perspective of a member of the sustainable development team, the internal audit department aims to contribute sustainable value to the sustainable operation of the company from the perspective of the internal audit department.

The audit results are submitted to the Chairman and Audit Committee in the form of a written audit report, and are regularly reported at Audit Committee and Board meetings. The Audit Committee also retains the Audit Supervisor, Certifying Accountants and Independent Directors for two-way communication. For independent directors' suggestions and matters that require additional explanation, the Audit Supervisor will send an e-mail or written supplement to the independent directors before the next Audit Committee meeting.

The internal audit unit urges each unit and subsidiary of the company to conduct regular self-evaluations of the effectiveness of the internal control system each year. The self-evaluation content is sent to the audit office after approval by the department's top management, which reviews the quality and completeness of the self-evaluation reports of each unit and subsidiary. The comprehensive self-evaluation results serve as the basis for the chairman and general manager to issue an internal control system statement to the audit committee and the board of directors.