"The Audit Committee", composed of four independent directors, regularly convenes meetings prior to the board of directors each quarter to review the company's internal control systems, execution of internal audits, and significant financial business activities. It communicates with and exchanges views with certified public accountants to oversee the company's operations and risk management.

In 2023, our company held a total of 5 meetings, with the main deliberations as follows: 

• ⚫ Review of quarterly financial statements: All quarterly financial reports of our company have been approved by the Audit Committee
• ⚫ The audit supervisor reports to the committee each quarter
• ⚫ Establishment or revision of internal control systems and related important methods
• ⚫ Assessment of the effectiveness of internal control systems
• ⚫ Significant fund lending, endorsement, or provision of guarantee
• ⚫ Appointment of Yan Yufang and Lin Yongzhi from PwC as certified public accountants for 2023 financial report
• ⚫ Pre-approval of non-certified services provided by 2023 certified public accountant, its firm, and related enterprises and alliance firms to our company and its subsidiaries
• ⚫ Appointment of Mr. Sheng Baoxi as the convener of the second Audit Committee.