Corporate governance report

Items

Enforcement

Discrepancy and the reason for the discrepancy

A. The ownership structure and shareholder's equity

1. The handling of the shareholders' proposals and disputes
2. Search for information on the identities of major shareholders and their ultimate controlling persons
3. The establishment of risk control mechanism and firewalls with affiliates

1. Our Company has designated the Office of Shareholders' Affairs to handle the shareholders' proposals and disputes.
2. Our Company can discover information on the identities of major shareholders and their ultimate controlling persons.
3. Our Company has established the appropriate risk control mechanisms and firewalls according to internal rules, such as rules of supervision over subsidiaries, rules governing endorsement and guarantee, loaning of funds and the rules governing acquisitions and dispositions of assets etc.

No discrepancy

B. The composition and duties of Board of Direction

1. The election of independent directors
2. The regular evaluation of independence of CPA

1. Our Company has elected five seats for independent directors in the Board. The entire independent directors will constitute the Audit Committee.
2. The evaluation of CPA is one of the main duties of the Audit Committee.

No discrepancy

C. The establishment of communication channels with stakeholders

Our Company has established the appropriate communication channels with suppliers, customers, banks, investors and other stakeholders.

No discrepancy

D. The disclosure of information

1. The utilization of website to disclose the information of finance, operations and corporate governance
2. The others means of disclosing information

1. Our Company has set up a website containing the information regarding finance and operations.
2. Our Company has one chief spokesman and one acting spokesman and also designated a team to be responsible for gathering and disclosing the information.

Our Company discloses the enforcement of corporate governance in the shareholders' meeting.

No discrepancy

E. The establishment and enforcement of Audit Committee and other functional Committees

Our Company has set up the Audit Committee and the Compensation Committee in the Board.

No discrepancy

F. If your Company has implemented the corporate governance principles according to the Principles, please identify the discrepancy between it and the Principles：

Our company was set up "Corporate Govermance Best Practice Principles" by Board of Director meeting on March 25, 2014, and there are no discrepancy between corporate governance principles.

G. Other important discourses that help you to understand the enforcement of corporate governance of the Company：

Our Company requests a director shall voluntarily abstain from voting in the Board Meetings if a proposal is related to the director's own interests. Details are set forth in internal rules governing the conduct of Board Meeting.

Our Company has purchased liability insurance for directors and other key employees.

Items

Enforcement

Discrepancy and the reason for the discrepancy

A. The ownership structure and shareholder's equity

1. The handling of the shareholders' proposals and disputes
2. Search for information on the identities of major shareholders and their ultimate controlling persons
3. The establishment of risk control mechanism and firewalls with affiliates

1. Our Company has designated the Office of Shareholders' Affairs to handle the shareholders' proposals and disputes.
2. Our Company can discover information on the identities of major shareholders and their ultimate controlling persons.
3. Our Company has established the appropriate risk control mechanisms and firewalls according to internal rules, such as rules of supervision over subsidiaries, rules governing endorsement and guarantee, loaning of funds and the rules governing acquisitions and dispositions of assets etc.

No discrepancy

B. The composition and duties of Board of Direction

1. The election of independent directors
2. The regular evaluation of independence of CPA

1. Our Company has elected five seats for independent directors in the Board. The entire independent directors will constitute the Audit Committee.
2. The evaluation of CPA is one of the main duties of the Audit Committee.

No discrepancy

C. The establishment of communication channels with stakeholders

Our Company has established the appropriate communication channels with suppliers, customers, banks, investors and other stakeholders.

No discrepancy

D. The disclosure of information

1. The utilization of website to disclose the information of finance, operations and corporate governance
2. The others means of disclosing information

1. Our Company has set up a website containing the information regarding finance and operations.
2. Our Company has one chief spokesman and one acting spokesman and also designated a team to be responsible for gathering and disclosing the information.

Our Company discloses the enforcement of corporate governance in the shareholders' meeting.

No discrepancy

E. The establishment and enforcement of Audit Committee and other functional Committees

Our Company has set up the Audit Committee and the Compensation Committee in the Board.

No discrepancy

F. If your Company has implemented the corporate governance principles according to the Principles, please identify the discrepancy between it and the Principles：

Our company was set up "Corporate Govermance Best Practice Principles" by Board of Director meeting on March 25, 2014, and there are no discrepancy between corporate governance principles.

G. Other important discourses that help you to understand the enforcement of corporate governance of the Company：

Our Company requests a director shall voluntarily abstain from voting in the Board Meetings if a proposal is related to the director's own interests. Details are set forth in internal rules governing the conduct of Board Meeting.

Our Company has purchased liability insurance for directors and other key employees.