Requlating Related Party Transactions

Requlating Related Party Transactions

In strict accordance with the regulations of the securities requlatoryauthorities on the management of related party transactions, the Articlesof Association, the Measures for the Management of Related PartyTransactions(《关联交易管理办法》)and relevant procedural rules, theCompany continuously regulates the acts of related party transactions,considers the Company's related party transactions, and reqularly reviewsthe list of related parties and the interim and annual related partytransactions of the Company. ln doing so, the Company considers thenecessity for transactions, fairness of pricing, legality of procedures, andcompliance with shareholders' interests. According to the requirements ofthe Shanghai Stock Exchange and the Hong Kong Stock Exchange onrelated party transaction management, the Company's audit and riskmanagement committee under the Board of Directors is responsible forthe control and daily management of related transactions, and reviews theist of related parties and major related transactions on a regular basis. Atthe same time, the Company carefully grasps the differences betweenconnected transactions with securities regulatory authorities andconnected transactions as defined by accounting standards plus thoseunder the Hong Kona Stock Exchange Listina Rules, and strictly handlesthe decision-making procedures and fulfills the disclosure obliaations ofconnected transactions. This aims to ensure that the Company's connectedtransactions are requlated and fair, effectively improve the standardoperation of listed companies, and safequard the legitimate rights andinterests of listed companies and all shareholders.