Corporate Governance

Hebei Yichen recognized the importance of incorporating elements of good corporate governance in management and internal control procedures so as to achieve effective accountability. In accordance with the requirements of and corporate governance practices prescribed under the Listing Rules and the Articles of Association, Hebei Yichen has established an audit committee, remuneration committee, nomination committee, corporate governance committee and strategy committee.

Audit committee

The primary duties of the audit committee are mainly to make recommendations to the Board on the appointment and removal of the external auditor, review the financial statements and material advice in respect of financial reporting, oversee the internal control and risk management systems of the Company. At present, the audit committee comprises Mr. Jip Ki Chi, Mr. Wang Qi and Mr. Zhang Liguo, all being INEDs. Mr. Jip Ki Chi is the chairman of the audit committee.

Remuneration committee

The primary functions of the remuneration committee are to make recommendation to the Board on the overall remuneration policy and structure relating to all Directors, Supervisors and senior management of the Group and review performance based remuneration. At present, the remuneration committee comprises Mr. Zhang Liguo and Mr. Jip Ki Chi, the INEDs, and Mr. Wu Jinyu, the Executive Director. Mr. Zhang Liguo is the chairman of the remuneration committee.

Nomination committee

The primary functions of the nomination committee are to review the structure, size and composition (including the skills, knowledge and experiences) of the Board and to make recommendations to the Board on any proposed changes to the Board composition; to assess the independence of INEDs; to identify individual suitably qualified as potential Board members and to select or make recommendation to the Board regarding candidates to fill vacancies on the Board; and to make recommendations to the Board on the appointment and re-appointment of Directors and succession planning of the Directors. At present, the nomination committee comprises Mr. Wang Qi and Mr. Zhang Liguo, the INEDs, and Ms. Fan Xiulan, Executive Director. Mr. Wang Qi is the chairman of the nomination committee.

Corporate governance committee

The primary functions of our corporate governance committee are to introduce and propose relevant principles concerning corporate governance and to review and determine the corporate governance policy of the Group. At present, the corporate governance committee comprises Mr. Jip Ki Chi and Mr. Wang Qi, the INEDs, and Mr. Zhang Ligang, the Executive Director. Mr. Jip Ki Chi is the chairman of the corporate governance committee.

Strategy committee

The primary functions of the strategy committee are to conduct research and make recommendations to the Board on the Group’s mid-term and long-term strategies and their feasibility, to conduct research and make recommendations to the Board on the Group’s investment plans, major business decisions and investment earnings forecast and to evaluate and monitor the implementation of the strategy, plans and measures adopted by the Committee. At present, the strategy committee comprises Mr. Zhang Haijun and Mr. Zhang Ligang, the Executive Director,and Mr. Zhang Liguo, the INEDs. Mr. Zhang Haijun is the chairman of the strategy committee.