In strict accordance with the provisions of the “Law of Corporation”, “Securities Law of The People’s Republic of China”, “Code of Corporate Governance for Listed Companies in China”“Shenzhen Stock Exchange Listing Rules”, Guidelines for the standardized operation of SME board listed companies on the Shenzhen Stock Exchange”, the company shall establish and improve its corporate governance structure and system, keep optimizing the management structure with "Shareholders meeting, Board of directors, Board of supervisors and Senior managers" as the main body, improve and implement the internal control system, strengthen enforcement and supervision, conscientiously and timely fulfill information disclosure obligation, actively conduct investor relations management, promote the upgrading of operation standard, and safeguard the interests of all the shareholders, employees and social stakeholders.
In strict accordance with the provisions of the “Law of Corporation”, “Articles of Association of the Company” and “Rules of Procedure of the Shareholders Meeting”, the company shall standardize the organizing, convening and voting procedure of the shareholders meeting, during which lawyers shall attend and issue legal opinions to ensure the legality of the organizing, convening and voting procedures. The company respects the rights and interests of shareholders, treats all shareholders equally, especially small and medium-sized shareholders, listens to shareholders' opinions carefully, and provides online voting platform for shareholders to exercise their voting rights and participate in enterprise decision-making. Through combining on-site voting with online voting during the shareholders' meeting, the company enables all shareholders, especially small and medium-sized shareholders to fully exercise their rights and express their opinions. When there are important matters that will affect the interests of small and medium investors in the deliberations of the shareholders' meeting, the votes of the small and medium investors shall be counted separately and the results of the counting shall be disclosed publicly in a timely manner.
Board of Directors
The company has a board of directors, whose members are elected by shareholders meeting. Responsible to the shareholders meeting, the company's board of directors is composed of nine directors, including three independent directors, one of whom is an accounting professional. The authority and obligation of the directors are clarified in the “Articles of Association of the Company”, and the company establishes the “Rules of Procedure of the Board of Directors” and the “Independent Director System”. Four committees of strategy, nomination, salary and assessment have been established and the relevant rules of procedure have been formulated by the board of directors.
Board of Supervisors
The board of supervisors is composed of 3 supervisors, including two shareholder representatives and one employee representative.The employee representative in the board of supervisors is elected by the employees through the congress of workers and staff representative, the congress of workers and staff or other form of democratic election. In strict accordance with the provisions of the Guidelines for the standardized operation of SME board listed companies on the Shenzhen Stock Exchange”, “Articles of Association of the Company” and “Rules of Procedure of the Board of Supervisors”, the board of supervisors shall regulate the organizing, convening and voting procedure of the meetings of the board of supervisors and attend all board meetings. The board of supervisors shall be responsible to the shareholders' meeting, and the supervisors shall fulfill their obligations honestly, faithfully, diligently and conscientiously to supervise the company's business activities, financial status, and the performance of the directors, managers and other senior management personnel, and to safeguard the legitimate rights and interests of the company and shareholders.