The Group has established an Audit Committee with written terms of reference as suggested under the Code of Best Practice set out in Appendix 14 of the Listing Rules and adopted with reference to "A Guide for Effective Audit Committees" published by the Hong Kong Institute of Certified Public Accountants.

　　The Audit Committee comprises Wu Fred Fong , Wang Ching and Zhang Liren, all INEDs. The chairman of the Audit Committee is Wu Fred Fong . Each member can bring to the Committee his valuable experience in reviewing financial statements and evaluating significant control and financial issues of the Group who among themselves posses a wealth of management experience in the accounting profession or commercial sectors.

　　The main duties of the Audit Committee are as follows:
　　(i) to review the half-year and annual financial statements before they are submitted to the Board for approval;
　　(ii) to make recommendations to the Board on the appointment, reappointment and removal of the external auditors, and approve the remuneration and terms of engagement of the external auditors, and any questions of resignation or dismissal of that auditors;
　　(iii) to review and monitor the external auditors' independence and objectivity and the effectiveness of the audit process in accordance with applicable standards;
　　(iv) to review the Company's financial controls, internal controls and risk management systems;
　　(v) to review the Group's financial and accounting policies and practice;
　　(vi) to review and monitor the effectiveness of the internal audit function; and
　　(vii) to review the terms and conditions of connected transactions of the Group.

The members of the Audit Committee:
Wu Fred Fong
Wang, Ching
Zhang, Liren