On the morning of July 29^th, SCDP completion audit results feedback meeting was held in Quangang Office Building. Some members of project audit team, and  OOP, project manager, related business responsible personnel and etc. of FREP attended this meeting.

The project audit fieldwork with a five-week period attracted great attention from FREP OOP and project manager, and obtained proactive cooperation from related personnel, the fieldwork was completed successfully. Mr. Wang Guorong, the director of Sinopec Audit Department’s Guangzhou Division expressed his heartfelt thanks to strong support and coordination from FREP during the audit.

Mr. Zhu Rongxi, the in-charge auditor of this engagement briefed the preliminary audit results. Through the audit, the audit team recognized that construction organized by the project was efficient, the project was run well in a safety and stable manner, the expected specifications on product output, energy consumption, quality, etc. have been met or exceeded. However, some areas like compliance of laws/regulations, project settlement review, procurement management and project cost accounting should be further improved.

Mr. Gu Yuefeng, the chairman/president expressed the sincere gratitude to the audit team for their hard work and their help to FREP on behalf of the Company! This audit identified more than 30 issues such as some projects exceeding budget estimate, de-normalized cost accounting, sole source procurement designated by the Designer and etc. Those audit results are certainly helpful for FREP to timely summarize project construction management experience, enhance internal control, and further promote the Company’s project construction more standardized. For the issues found in this audit and recommendations proposed by the experts in auditing, Mr. Gu requested relevant departments to attach high importance to the findings and recommendations, define clear responsibilities, list work plan and implement rectification measures item by item.

The formal audit report is expected to be issued in Sept. according to the audit team work plan.（Xujuan）