Internal Audit

1. Purpose and Organization of Internal Audit

In accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies” and relevant laws and regulations, the company has established and continuously enhances its internal control system. The primary purpose of internal audit is to assist the Board of Directors and management in examining and reviewing the effectiveness of internal controls, evaluating operational performance and efficiency, and providing timely recommendations for improvement. This ensures the continuous effectiveness of internal control systems and supports the company’s sound and sustainable development.

The company has established an Internal Audit unit reporting directly to the Board of Directors, responsible for executing internal audit functions. Based on the company’s scale, business nature, and management needs, the unit is staffed with one Chief Audit Executive and an appropriate number of full-time audit personnel. The appointment and dismissal of the Chief Audit Executive must comply with relevant legal qualification requirements and be approved by the Board of Directors, ensuring independence and professionalism.

2. Operation of Internal Audit

Internal auditors perform their duties with independence, objectivity, and professional integrity, in accordance with applicable auditing standards. The Chief Audit Executive regularly reports audit activities to the Audit and Risk Committee and attends Board meetings to present relevant matters, thereby strengthening the oversight mechanism.

Audit activities are conducted based on an annual audit plan approved by the Board of Directors, which is formulated according to risk assessment results. Special audits may also be carried out as needed. Any deficiencies in internal controls or irregularities identified during audits are subject to a tracking mechanism, with periodic reports on corrective actions to ensure that appropriate and effective improvements have been implemented.

In addition, the Internal Audit unit supervises all departments and subsidiaries in conducting annual self-assessments of internal control systems, reviews their results, and integrates audit findings and improvement status. These serve as a key basis for the Board of Directors and the General Manager in evaluating the overall effectiveness of internal controls and issuing the Internal Control System Statement.

Audit reports and follow-up reports, after approval by the responsible supervisor, are submitted to the Audit and Risk Committee for review by the end of the month following completion of each audit project. In the event of material violations or circumstances that may cause significant damage to the company, the Internal Audit unit will immediately report to the Board of Directors and the Audit and Risk Committee to ensure timely risk disclosure and proper handling.