Compliance Management

Compliance Management

The Company pushed forward the construction of corporate compliancemanagement system towards the goal of“rule by law, governance by regulation' lr2022, the Company carried out a special campaign named"Compliance ManagementEnhancement Year" focusing on system development acceleration, operationmechanism improvement, implementation of compliance managementresponsibilities, overseas compliance intensification, organizational systemimprovement, compliance culture cultivation, and so on to continuously improve thecompliance management system and operation mechanism. The campaign alscemphasized prevention of compliance risks in key areas, acceleration of the training othigh-quality compliance personnel, and constant improvement of the modern levelof compliance management system and management capabilities. This will providesupport and guarantee for achieving the strategical goal of“four strong capabilitiesand five excellent aspects and“world class

in 2022, the Company regarded svstem establishment as a fundamental task tostrengthen compliance management and promote modernization of governanceWe optimized the scope and process of system review to comprehensivelystrenathen the audit and control of systems in terms of compliance, systematicnessand standardization. In accordance with relevant laws and regulations, the Companystudied and formulated the lmplementation Measures for Compliance Managementwhich makesinstitutionalarrangements withfocus on strenathenina the comoiancemanagement responsibilities of businesdepartments, strengthening the compliancemanagement at the grassroots level and strengthening the compliance proces.controlso as to ensure a consistent andsvnergistic implementation of compliancemanagement in all respects. In terms of key areas such as engineering constructionfinance and overseas business, we studied and developed and improved speciacompliance systems for enqineering subcontractinq, investment, production safetyand foreign corrupt practices.

In 2022, the Company held a company-wide compliance management meetinq. ChenYun, the Secretary of the Party Committee and Chairman of the Board of Directorsmade a compliance proposal and put forward the requirements in terms of sevenaspects across the Company: efforts should be made to raise political stance andstrengthen the ideological and operational consciousness of compliance managementefforts should be made to improve the compliance management system and enhanceits foundation; efforts should be focused on prominent issues and enhance targetedcompliance management: eftorts should be made to strenathen executive forcedevelopment and enhance efectiess of compliance management; efforts should bemade to deepen the "four-pronged" supervision pattern and enhance the synergy ofcompliance supervision; efforts should be made to increase accountability for violationsand enhance the authority of compliance supervision: efforts should be made tostrengthen the cultivation of compliance culture and enhance sustainable endogenousmomentum for compliance management. Chen Wenjian, the Deputy Secretary of theParty Committee and President of the Company, put forward specific requirements interms of seven aspects to strenathen compliance manacement: improvements shoulcbe made to rules and requlations to enhance the systematicness and applicability ofcompliance management; improvements should be made to organizational structureto enhance the support for compliance management: improvements should be madeto operation mechanisms to enhance the efficiency of compliance manaaement:improvements should be made to risk prevention measures for key areas and cruciaparts of compliance to enhance the efficiency of compliance managementimprovements should be made to response mechanisms to enhance the ability to deawith compliance risks and incidents; improvements should be made to evaluationmechanisms to enhance the ability of continuous advancement of compliancemanagement: improvements should be made to law-business integration mechanismto enhance the capability of compliance management to create value.