天目药业: 杭州天目山药业股份有限公司内部控制缺陷认定标准（2025年8月修订）

Core Viewpoint - The internal control defect recognition standards of Hangzhou Tianmu Mountain Pharmaceutical Co., Ltd. aim to ensure the establishment and effective execution of internal control systems, enhancing operational management and risk prevention capabilities, and promoting standardized operations and healthy development of the company [2]. Summary by Sections General Principles - The standards are formulated based on relevant regulations, considering the company's operational scale, industry characteristics, risk levels, and significance [2]. Classification of Internal Control Defects - Internal control defects are categorized into design defects and operational defects: - Design defects refer to the absence of necessary controls or inappropriate design that hinders achieving control objectives [3]. - Operational defects refer to effective designs that fail to operate as intended due to improper execution or lack of necessary authority or competence [3]. Severity of Internal Control Defects - Defects are classified based on their severity: - Major defects can severely impact the effectiveness of internal controls, leading to significant deviations from control objectives [3]. - Important defects are less severe but still warrant attention from the board and management [3]. - General defects encompass all other defects not classified as major or important [3]. Overall Recognition Standards for Internal Control Defects - Defects are further divided into financial reporting defects and non-financial reporting defects, with recognition standards developed based on qualitative and quantitative considerations [4]. Financial Reporting Internal Control Defect Recognition Standards - Specific quantitative thresholds are established for recognizing defects based on potential misstatements in total assets and pre-tax profits: - Major defects are recognized if potential misstatements exceed 0.5% of total assets or 5% of pre-tax profits [5][6]. - Important and general defects have lower thresholds for recognition [5][6]. Non-Financial Reporting Internal Control Defect Recognition Standards - Non-financial reporting defects are recognized based on direct property losses and penalties from government authorities, with specific monetary thresholds set for major, important, and general defects [7]. Additional Considerations - The recognition of internal control defects also considers the risk accumulation effect of defect combinations and the mitigating effects of certain controls [7]. - The financial indicators used for quantitative standards are based on the company's most recent audited consolidated financial data [7]. - The company must reassess and revise the recognition standards if there are significant changes in operational conditions or financial metrics [7]. Applicability and Governance - These standards apply to the company and its subsidiaries, with the board of directors responsible for their formulation, revision, and interpretation [7].