The Company has a sound internal control system both financial and operation wise, to safeguard shareholders’ investment and the Company’s assets as well as to comply with the prevailing laws and regulations. Although the system incorporates risks identification, analysis and management, the Company is aware that such framework is designed to cope with rather than eliminate risks and therefore cannot provide an absolute assurance against material misstatement or loss. Good comprehensive internal controls can improve the effectiveness and efficiency of financial reporting as well as compliance with external laws and internal policies.
The above-mentioned internal control framework is reviewed in a periodic and systematic manner, so as to provide satisfactory assurance that the Company has a sound internal control framework and that the established framework is adhered to and continues to be effective. By running such audits, the Company believes that its overall performance can be constantly maintained and enhanced.