Risk Management and Internal Control

We recognize that risk management is critical to our business. It is our responsibility to establish, maintain and review the effectiveness of the Company’s risk management and internal control systems. To achieve this, we have implemented the following structures and measures to control and manage our risks.

• Our Board is responsible and has general powers over the management and conduct of our business, and is in charge of our overall risk control.
• We seek to maintain a corporate culture with a high level of responsibility, integrity and reliability to manage our operational and market risks.
• We implemented control measures to manage operational risks:
  1. We control major construction risks by engaging qualified construction contractors with strict contractual requirements while maintaining daily quality control supervision.
  2. We closely monitor the quality and safety measures adopted on our construction sites with the construction contractors to lower the risks of damage to our property and liabilities that may be attributable to us.
  3. We engage reputable financial, accounting and legal professionals to assist us in conducting significant corporate transactions, such as material investments for capital expenditure, incurrence of indebtedness or other financing activities.
• We develop and regularly update our policies and procedural manuals based on our operational needs.
• We enforce strict control and accountability policies and manuals at an individual employee level and conduct ongoing on-site training.