Good corporate governance is conducive to enhancing overall performance and accountability and is essential in modern corporate administration. The Board of Directors continuously observes the principles of good corporate governance in the interests of Shareholders and devotes considerable effort to identifying and formalizing best practice.
We established an audit committee pursuant to a resolution of our Directors passed on 7 December 2011 with written terms of reference in compliance with Rule 3.21 of the Listing Rules. The primary duties of the audit committee are mainly to make recommendation to the Board on the appointment and removal of external auditor; review the financial statements and material advice in respect of financial reporting and oversee internal control procedures of our Company. At present, the audit committee of our Company consists of three members, being Mr. Yu Shuli, Mr. Tian Yushi and Mr. Xu Jiali. Mr. Yu Shuli is the chairman of the audit committee.
We established a remuneration committee pursuant to a resolution of our Directors passed on 7 December 2011 with written terms of reference. The primary duties of the remuneration committee are to evaluate and make recommendation to the Board on the overall remuneration policy and structure relating to all Directors and senior management of our Group. The remuneration committee consists of three members, being Mr. Zhou Minfeng, Mr. Yu Shuli and Mr. Tian Yushi. Mr. Yu Shuli is the chairman of the remuneration committee.