Follow-up Meeting on 2014 Shareholder Audit Gap Closure was held on the morning of September 4, with attendance of OOP, function management and control representatives.

Chief Auditor Liu Cuixia presented the main contents of the Shareholders’ Audit Report" at the meeting and required all the departments to pay more attention to implementation of the systems and business procedures, and guarantee effective execution as required in the report. She also asked relevant business departments to propose rectification measures for approval by president or vice-presidents in charge and regularly update the progress at specific meetings.

At the meeting, GM Finance Joe Francis presented the overview of recent audits arranged by shareholders and the progress of business control by the company. He said the decrease of high-risk issues found in this audit showed the achievements the departments have made in business control and all of us should be confident with our work. Hong Jie, manager of financial control group reported the gap closure progress of all audited departments and facilitated a discussion on the five major cross-functional audit issues. GMs of all departments discussed actively about the gap closure issues requiring coordination of the company management.

On behalf of OOP, Chairman and President Lu Dong wrapped up the meeting and raised some requirements. Firstly, he expressed his gratitude to shareholders for the improvement opportunity the audit has brought to the company. Since the company and shareholders share the same goal, he expected the company could improve its business and management based on the audit. Secondly, the audit was an overall and thorough examination on all the production operations and project constructions fulfilled in the past three years, with broader audit scope and longer time span but fewer high-risk issues in comparison with previous shareholder audits, which showed the great progress the employees made in business control and management. Thirdly, the company should take a right position and attach great importance to audit issues, with department management directly in charge of issue rectification to make corrective measures in due time and avoid recurrence of similar issues in combination with OIMS system requirements. The company will hold regular meetings to follow up the rectification. Finally, the internal audit office should provide timely feedback to shareholders about progress of issue rectification.