Friend (SH:605050) Zheng Quan Zhi Xing·2025-08-25 16:13Core Viewpoint - The company has established a system for accountability regarding significant errors in annual report information disclosure to enhance the quality, transparency, and accuracy of its disclosures [1][2]. Group 1: General Principles - The system aims to improve the company's operational standards and increase accountability for those responsible for annual report disclosures [1]. - It is based on various laws and regulations, including the Company Law and Securities Law, as well as internal company regulations [1][2]. - The system applies to directors, senior management, major shareholders, and other relevant personnel involved in the disclosure process [2]. Group 2: Identification and Handling of Errors - Significant errors in annual report disclosures include major accounting errors, substantial omissions, and discrepancies in performance forecasts [2][3]. - The company’s board of directors, led by the board secretary, is responsible for collecting and summarizing relevant materials related to accountability [2][3]. Group 3: Standards for Major Accounting Errors - Major accounting errors are defined by specific thresholds, such as errors affecting total assets, net assets, revenue, or profit by more than 5% and exceeding 5 million [3][4]. - Other significant errors include failure to disclose major accounting policy changes or significant lawsuits affecting more than 10% of net assets [4][5]. Group 4: Accountability Procedures - The company will pursue accountability for significant errors, holding not only the directly responsible individuals accountable but also the chairman, general manager, and board secretary for overall disclosure accuracy [7][8]. - The company will implement corrective measures and report to the board for any regulatory actions taken due to significant errors [7][8]. Group 5: Penalties and Mitigation - Penalties for significant errors can include warnings, internal criticism, demotion, or termination, with the possibility of economic penalties [8][9]. - Factors that may lead to reduced penalties include proactive measures to prevent negative outcomes or correcting errors promptly [8]. Group 6: Reporting and Compliance - The results of accountability measures will be included in the annual performance evaluations of relevant departments and personnel [8][9]. - The board of directors is responsible for interpreting and revising the accountability system, which will take effect upon approval [9].