The Company continuously enhances its internal control system and framework, establishes effective management mechanism, comprehensively identifies and mitigates various risks arising in the process of enterprise development, and improves operational efficiency and risk resilience. A risk monitoring and early warning mechanism has been established, with reasonable risk indicators and early warning thresholds set in line with the Company's risk appetite. The Board of Directors and the Audit Committee receive regular reports on internal control, dynamically assess major risks, determine prevention and control measures and response plans, review the Company's risk exposure annually and disclose key risk factors in the annual report to ensure the internal control system remains sound and effective.

Through internal and external audits, the Company conducts comprehensive reviews and evaluations of the finance, operation, internal control, and risk management of PetroChina and its wholly-owned and controlled subsidiaries, thereby continuously strengthening and improving internal control and risk management. The Company has revised and promulgated regulations such as the Risk Management Regulations and the Business Process Management Measures, incorporating risk management requirements into business processes, clarifying management institutions and responsibilities, realizing closed-loop management of risk assessment, monitoring, early warning, and resolution.

The Company strengthens the cultivation of a risk management culture and enhances information-based and digital risk management. It regularly provides risk management training to non-executive directors and conducts focused training on risk management principles across the organization. Also, the Company reinforces supervision, evaluation, and accountability, and incorporates key risk management indicators into the financial incentive mechanism of relevant personnel.

In terms of special risk management, particularly for overseas business activities, the Company has explicitly stipulated that it will not participate in political donations and will not provide political contributions to candidates or political parties in any country or region, whether directly or indirectly, in order to effectively prevent and control related risks.