We continue to improve the corporate governance structure and optimize its internal management in accordance with relevant laws and regulations and other normative documents, such as the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Code of Corporate Governance of Listed Companies and Rules Governing the Listing of Stocks on Shanghai Stock Exchange by China Securities Regulatory Commission (CSRC), and the Appendix C1 "Corporate Governance Code" of Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.
1. Regarding controlling shareholders and listed companies: The controlling shareholder (s) of the Company exercise their rights as shareholders in accordance with the Articles of Association of the Company. The controlling shareholders are independent of the Group in terms of personnel, assets, finance, institutions and business. The Board of Directors, Board of Supervisors, and the branches of the Company are operated independently.
2. Regarding directors and the Board of Directors: We select and hire directors in accordance with the procedures prescribed in the Articles of Association and the Policy on Diversity of Board Members. As of 31 December 2024, the Board of Directors comprises a total of 12 directors (including two female directors), including 4 independent non-executive directors who are specialized in accounting, law, pharmaceutical industry, technology licensing and commercialization. The number and composition of the Board of Directors comply with relevant laws and regulations and development demand of the Group. The rules of procedure of the Board of Directors are specifically stipulated in the Articles of Association. The Board of Directors of the Company sets up five committees, including the Strategy Committee, Audit Committee, Nominating Committee, Remuneration and Appraisal Committee, and Environment, Social and Governance Committee, with specified terms of reference and implementation rules for each committee.We have established a special meeting mechanism for independent non-executive Directors to create a platform for independent non-executive Directors to fulfill their duties. This initiative actively leverages their professional expertise and advantages to promote the Company’s standardized operations and informed decision-making.
3. Regarding the supervisors and the Board of Supervisors: We select and hire supervisors in accordance with the procedures prescribed in the Articles of Association. As of 31 December 2024, the Board of Supervisors comprises a total of 3 supervisors. The number and composition of the Board of Supervisors comply with relevant laws and regulations. The rules of procedure of the Board of Supervisors are stipulated in the Articles of Association. The Board of Supervisors can independently exercise the right of supervision over the performance of directors and senior executives.
4. Regarding performance evaluation and incentive and restraint mechanism: We have established performance evaluation standards and procedures for senior executives, and continue to improve the incentive mechanism for senior executives and other key positions to boost the sustainable development of the Company.
5. Regarding interested parties: We fully respect the legal rights of such interested parties as shareholders, employees, customers and consumers, suppliers, and communities, and actively cooperates with them to jointly promote the healthy and sustainable development of the Group.
6. Regarding the information disclosure: We fulfill the obligation of information disclosure of the listed companies in accordance with relevant laws and regulations, such as the Administrative Measures for the Information Disclosure by the CSRC, and the Articles of Association and Information Disclosure System of the Company. In addition to financial reporting, the Company also regularly releases the internal control evaluation reports, ESG ( environmental, social and governance ) reports to the public, and engages professional institutions to issue audit /review opinions to fully demonstrate the initiatives and outcomes in respect of sustainable development. We attaches great importance to communication and exchange with investors and ensures that investors can obtain the public information released by the Group in a fair and timely manner.
Sound corporate governance is the foundation and guarantee of enterprise development. We will continue to consolidate and improve our corporate governance and enhance its competitiveness to provide stable and sustainable returns to shareholders.
