Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC) has released an updated version of the Audit Committee’s Terms of Reference, adopted by the Board of Directors on 29 April 2026. Key points are as follows:

• Scope and Purpose The Audit Committee remains a specialised Board organ tasked with monitoring YOFC’s accounting policies, financial reporting, risk management and internal control systems, as well as supervising both internal and external audit activities.

• Committee Composition – Minimum of three non-executive directors, with a majority being independent. – At least one member must possess professional accounting qualifications. – A former audit-firm partner must observe a two-year cooling-off period before joining. – The Committee elects an independent, accounting-qualified chairman; members serve concurrent terms with the Board.

• Principal Responsibilities – Recommend appointment, reappointment or removal of external auditors and set related remuneration and terms. – Assess auditor independence, audit scope and quality, and coordinate internal–external audit interaction. – Review annual, interim and—if issued—quarterly financial statements, focusing on material judgements, policy changes, error corrections and compliance with accounting standards and listing rules. – Oversee the effectiveness of YOFC’s risk management and internal control frameworks, receive and evaluate internal audit reports, and monitor remediation of identified deficiencies. – Establish and maintain whistle-blower mechanisms to ensure confidential reporting and independent investigation of potential improprieties. – Issue written evaluations on internal control effectiveness for Board consideration and public disclosure.

• Meeting Protocols – At least four regular meetings per year, plus ad-hoc sessions as required. – Quorum set at two-thirds of members; resolutions pass by simple majority. – Mandatory annual session with external and internal auditors in the absence of executive directors to ensure independent dialogue. – Detailed minutes retained for a minimum of ten years.

• Reporting & Disclosure The Committee must provide written recommendations and voting results to the Board. YOFC will disclose Committee composition, members’ professional backgrounds and key activities in its annual report and on stock-exchange websites. Material issues identified by the Committee that trigger disclosure obligations will be announced promptly, including rectification status.

• Oversight of Shareholder Returns The Committee is instructed to monitor implementation of cash-dividend policies and shareholder-return plans, intervening if Board actions or disclosures prove inadequate.

The revised terms become effective immediately upon the Board’s approval and supersede previous versions adopted on 6 May 2014.