Corporate Governance Code

The Company's Corporate Governance Code is in accordance with the Principles of the Best Practice Code on Corporate Governance for Listed and OTC Companies：

1. Protect the rights and interests of shareholders.

2. Strengthen the functions of the board of directors.

3. Give full play to the function of independent directors.

4. Respect the rights and interests of stakeholders.

5. Enhance information transparency.

In accordance with the provisions of the Standards for the Establishment of Internal Control System for Public Companies, an effective internal control system shall be established in consideration of the overall business activities of the Company, and shall be reviewed from time to time to ensure that the design and implementation of the system continue to be effective in response to changes in the internal and external environment of the Company.

The Board of Directors and the management review the results of the self-inspection of each department and the audit report of the audit unit every year, and the audit committee supervises it.

The management of the Company attaches great importance to the internal audit units and personnel, and gives them full authority to urge them to properly inspect and evaluate the deficiencies of the internal control system and measure the efficiency of the operation, so as to ensure the continuous and effective implementation of the system, and assist the Board of Directors and the management to fulfill their responsibilities, so as to implement the corporate governance system.

1. The Company shall determine the appropriate number of directors based on the scale of business development and the shareholding of its major shareholders, taking into account the needs of practical operations. The establishment of independent directors also carefully considers the reasonable professional composition and the objective conditions for the independent exercise of their powers.

2. The Company has set up an Audit Committee, which can fully communicate with the Company's employees, shareholders and stakeholders through the Board of Directors, shareholders' meeting and audit reports.