Concord Healthcare Group Co., Ltd. (the Company) published new Terms of Reference for its Audit Committee set up under the Board of Directors. The document highlights the Committee’s objective to enhance internal control, strengthen audit and supervision over financial information, and protect shareholder interests.

The Audit Committee is composed exclusively of non-executive directors, with no fewer than three members, and the majority must be independent non-executive directors. At least one member must have appropriate professional qualifications or financial expertise, and the Committee chair must be an independent non-executive director. The Committee is tasked with reviewing the Company’s accounting policies and financial reports, coordinating internal and external audits, and assessing risk management for major investment projects.

The Terms of Reference define procedures for electing Committee members, handling resignations, and conducting regular and extraordinary meetings. They also set forth voting procedures, require a strict abstention policy in cases of conflicts, and mandate confidential handling of all matters discussed.

Additional responsibilities include reviewing and monitoring the Company’s compliance with accounting standards, legal and regulatory requirements, and keeping track of financial reporting integrity. The Committee reports directly to the Board and may advise on the appointment of external audit firms, review the chief financial officer’s engagement or dismissal, and appraise the work of the Company’s internal audit department. The Terms of Reference take effect upon Board approval, and if any matter is not fully addressed, the Company’s Articles of Association and relevant laws prevail.