New East(SH:603110) Xin Lang Cai Jing·2025-10-22 10:52Core Viewpoint - The company has completed the rectification work in response to the Anhui Securities Regulatory Commission's order regarding accounting irregularities and inadequate internal controls, with a series of targeted measures implemented to enhance governance standards [1][4]. Summary by Sections Rectification Measures for Accounting Irregularities - The company has implemented three main corrective actions: 1. Re-evaluating the roles and permissions within the existing ERP system to ensure incompatible duties are separated and a mutual restriction mechanism is established [2]. 2. Reviewing and supplementing any missing or non-compliant original attachments for accounting vouchers from 2022 onwards, as per the Accounting Basic Work Standards [2]. 3. The internal audit department will conduct regular reviews of accounting vouchers and organize semi-annual special inspections to ensure compliance and monitor the implementation of corrective measures [2]. Rectification Measures for Inadequate Internal Controls - The company has undertaken systematic reforms focusing on institutional development, process optimization, and supervision mechanisms: 1. Adjusting the organizational structure and clarifying responsibilities, with new management measures for subsidiaries approved by the board [3]. 2. Enhancing compensation and approval management by requiring subsidiaries to refine their compensation management systems within 15 days after board approval [3]. 3. Improving procurement management by mandating competitive bidding for suppliers, with a review of large equipment purchases over the past three years [3]. 4. Revising the expense reimbursement policy to standardize business entertainment and travel expenses, with a self-review of large entertainment expense vouchers from 2022 onwards [3]. Measures to Consolidate Rectification Outcomes - The company emphasizes several multi-dimensional measures to solidify the rectification results: 1. The internal audit department will conduct annual evaluations of internal controls and report findings to the board's audit committee [4]. 2. Training sessions will be organized for staff across various departments to reinforce accountability [4]. 3. Subsidiaries are required to refine their internal management systems based on the new organizational structure within 15 days of board approval [4]. - The company believes these rectification efforts will significantly enhance internal controls and operational standards, ensuring sustainable and healthy development while protecting shareholder interests [4].