Corporate Governance

The company is currently the second session of the Audit Committee, which was officially established on July 29, 2011. It is currently composed of 3 independent directors, and Mr. He Chendan, an independent director, was elected as the convener to be responsible for the auditing of the company’s financial statements. The selection (resignation) of accountants and their independence and performance, the effective implementation of the company’s internal control, the company’s compliance with relevant laws and regulations, and the management and control of the company’s existing or potential risks.

The audit committee of the company meets at least once a quarter, and invites accountants, internal audit supervisors, and financial department supervisors to participate and report.
Among them, the accountants report to the audit committee on the financial report review (review) on a quarterly basis, and the audit department reports to the audit committee on the internal control and audit content on a quarterly basis.

The work priorities in 2023 are as follows:

The company is currently the second audit committee. It was officially established on July 29, 2021. It consists of three independent directors. The independent director Mr. He Chendan was elected as the convener. It meets at least once every quarter and is responsible for auditing the company’s financial statements. proper expression, the selection (dismissal), independence and performance of certified public accountants, the effective implementation of the company’s internal controls, the company’s compliance with relevant laws and rules, and the management and control of the company’s existing or potential risks, etc.

(1) Establish or amend the internal control system in accordance with Article 14-1 of the Securities and Exchange Act.
(2) Assessment of the effectiveness of the internal control system.
(3) Establish or amend the procedures for handling major financial business activities such as acquiring or disposing of assets, engaging in derivatives transactions, lending funds to others, endorsing or providing guarantees for others, in accordance with Article 36-1 of the Securities and Exchange Act.
(4) Matters involving directors’ own interests.
(5) Significant asset or derivatives transactions.
(6) Significant capital loans, endorsements or guarantees.
(7) Raising, issuing or privately placing securities of an equity nature.
(8) Appointment, dismissal or remuneration of certified accountants.
(9) Appointment and removal of financial, accounting or internal audit supervisors.
(10) Annual financial report and semi-annual financial report.
(11) Other major matters stipulated by the company or the competent authority.

The Audit Committee convened 5 meetings in 2023 (A). The attendance is as follows:

Other mentionable items:

I.The date, session, content of the motion, resolution of the Audit Committee and the Company’s means of processing the opinions of the Audit Committee shall be specified if one of the following circumstances occurred in the operation of the Audit Committee:

(I)Matters listed under Article 14-5 of the Securities and Exchange Act:

Communication methods between independent directors, internal audit supervisors and CPA
1. Communication situation between independent directors and CPA:

(1)The company’s independent directors and CPA communicate and discuss in writing every year on the company’s financial status and the design and implementation of the internal control system. When necessary, the accountants also communicate and discuss in writing. The scope includes the accountants’ review of the independence and related responsibilities of the financial statements, and audit Plan related matters, review major findings (including adjusting entries and significant deficiencies in internal controls, etc.), review report content and review results of interim consolidated financial statements; in addition, accountants may communicate with independent board meetings from time to time as necessary.
(2)An excerpt of the main communication matters between independent directors and accountants is as follows:

2. Communication situation between independent directors and internal audit manager:

(1) The company’s audit unit and independent directors and supervisors shall submit the audit report and defect tracking report for the previous month at least before the end of each month; in addition, each board meeting shall submit a report on the implementation status of the company’s annual audit plan and the tracking and improvement of internal control defects. , and hold discussions with independent directors from time to time.
(2) An excerpt of the main communication matters between the independent directors and the internal audit manager is as follows: