Compliance and Exemption of Corporate Governance Obligations Imposed by New York Stock Exchange

紐約證券交易所公司治理義務的遵守和豁免

Based on its Listing Rules, New York Stock Exchange (“NYSE”) imposes a series of corporate governance standards for companies listed on the NYSE. However, NYSE has granted permission to listed companies of foreign private issuers to follow their respective “home country” practice and waivers for compliance with corporate governance standards. One of the conditions for such waiver is for the listed company to disclose in its annual report how the corporate governance practices in its “home country” differ from those followed by companies under NYSE listing standards.

紐約證券交易所已經根據其上市規則規定了一系列上市公司必須遵守的公司治理準則。然而，紐約證券交易所也明確的表示尊重外國發行公司“母國”的習慣而給予這些公司治理準則的豁免。給予豁免的條件之一即本公司必須在年度報告中摘要描述紐約證券交易所上市規則中公司治理規定與“母國”公司治理規範中的差異。

The Company has compared the material corporate governance standards generally adopted by the companies incorporated in the PRC and the standards developed by NYSE, as follows:

本公司已比較了目前慣常由包括本公司在內的中國公司採用的公司治理規範及紐約證券交易所所定的公司治理規則，如下：

A Majority of Independent Directors

超過半數的獨立董事

NYSE requires that the board of a listed company must comprise a majority of independent directors. There is no identical corporate governance requirement in the PRC. The Board of the Company currently comprises three independent directors and six non-independent directors which is in compliance with the requirement by the PRC securities regulatory authorities that the board of a listed company shall comprise at least one-third of independent directors.

紐約證券交易所要求上市公司的董事會由超過半數的獨立董事所組成，但是在中國境內成立的公司並無此要求。本公司董事會包含三名獨立董事及六名非獨立董事。符合中國證券監管機構要求上市公司中獨立董事不少於三分之一的規定。

Corporate Governance Committee

公司治理委員會

NYSE requires a listed company to establish a Corporate Governance Committee which comprises entirely of independent directors. The Corporate Governance Committee shall be co-established with the Nomination Committee and have a written charter. The Corporate Governance Committee is responsible (i) for recommending to the board a set of corporate governance guidelines applicable to the corporation; and (ii) supervising the operation of the Board and the management.

紐約證券交易所要求上市公司在董事會下成立一個全由獨立董事組成的公司治理委員會。公司治理委員會應與換屆委員會共同成立並備有章程。公司治理委員會有義務(i)向董事會提出公司治理的原則性建議；及(ii)監督董事會及管理層的運作情形。

The Corporate Governance Committee shall also be subject to evaluation annually. Like most of the other companies incorporated in the PRC, the Company believes that corporate governance measures are of critical importance and should be implemented by the Board. The Company accordingly does not separately maintain a Corporate Governance Committee.

公司治理委員會也應該接受每年一度的評估。本公司如同一般中國企業，認為公司治理事項至關重要，宜由全體董事來負責，故未另設公司治理委員會。