Supervisory Board

The PRC Company Law requires a joint stock company with limited liability to establish a supervisory committee. The supervisory committee is responsible for monitoring our financial matters and supervising the actions of our Board and our management personnel. Our Supervisory Committee consists of nine Supervisors. According to our Articles of Association, no less than one third of the members of our Supervisory Committee must be employee representatives elected by our employees. The remaining members must be appointed by shareholders in a general meeting. One member of our Supervisory Committee must be the chairman. Members of the Supervisory Committee may not include any Director, the chief executive officer and other senior executive officers of our Company. The term of office of our Supervisors is three years, which is renewable upon re-election and or re-appointment.
The functions and powers of our Supervisory Committee include, among others:

verifying financial reports and other financial information which have been prepared by the Board and which are proposed to be presented at shareholders' meetings;

overseeing our Directors, chief executive officer and other senior executive officers to prevent such persons from violating any laws, regulations or our Articles of Association, or otherwise infringing upon our interests, in the performance of their duties.