ZNHI(SZ:002445) Zheng Quan Zhi Xing·2025-08-19 09:14Core Viewpoint - The internal control system of Zhongnan Hong Culture Group Co., Ltd. aims to enhance management efficiency, risk prevention capabilities, and sustainable development by adhering to relevant laws and regulations [1][2]. Group 1: Internal Control Objectives and Principles - The internal control objectives include ensuring legal compliance, asset security, accurate financial reporting, and improving operational efficiency [3][4]. - Key principles of internal control include comprehensiveness, importance, checks and balances, adaptability, and cost-effectiveness [2][4]. Group 2: Internal Control Environment - The company establishes a governance structure and decision-making rules to clarify responsibilities and ensure effective supervision [6][7]. - The board of directors is responsible for establishing and implementing internal controls, while management oversees daily operations [7][8]. Group 3: Risk Assessment - The company conducts regular risk assessments to identify internal and external risks related to control objectives [14][15]. - A combination of qualitative and quantitative methods is used to analyze and prioritize identified risks [15][16]. Group 4: Control Activities - Control measures include manual and automated controls, separation of incompatible duties, authorization and approval controls, and budget management [20][21]. - The company emphasizes the importance of accounting system controls to ensure the accuracy and completeness of financial data [23][24]. Group 5: Information and Communication - An information and communication system is established to ensure timely sharing of internal control-related information [30][31]. - The company utilizes information technology to enhance information integration and security [33][34]. Group 6: Internal Supervision - The company implements a supervision mechanism to monitor the effectiveness of internal controls, including daily and special supervision [34][36]. - The internal audit management center is responsible for evaluating internal control operations and reporting significant deficiencies to the board [36][37]. Group 7: Reporting and Disclosure - The company is required to prepare an annual internal control evaluation report, which includes the effectiveness of internal controls and any identified deficiencies [41][42]. - The internal control evaluation report must be disclosed alongside the annual report, ensuring transparency [42][43].