Huzhou Gas Co., Ltd. released updated regulations to strengthen the Audit Committee’s role in overseeing financial decisions, enhancing risk management, and improving corporate governance practices. The revised guidelines align with relevant laws of the People’s Republic of China, the Listing Rules in Hong Kong, and the company’s Articles of Association.

The revised rules specify that the Audit Committee must comprise at least five non-executive directors, with a majority serving as independent non-executive directors. At least one member must possess relevant professional qualifications or accounting expertise. The chair of the committee is chosen by its members and must be an independent non-executive director. Members serve concurrent terms with the Board and can be re-elected upon expiration of their terms, provided they continue to meet all requirements.

Key responsibilities include overseeing external auditors, reviewing and monitoring the company’s financial statements, and ensuring transparency of disclosures. The committee is authorized to recommend appointing or removing external auditors, supervise financial reporting, direct the company’s internal audit department, and review major accounting policies and practices. It is also responsible for evaluating internal control measures to address any material weaknesses or significant risks identified in operations.

The committee will convene once every three months, with additional meetings allowed on demand. Members are expected to attend in person; those unable to attend may appoint a proxy in writing. Meeting resolutions require at least half of all votes in favor. Where conflicts of interest arise, the members involved must abstain.

Additionally, the Audit Committee may engage external professionals if needed. All meeting minutes are retained for at least ten years, and members are obligated to maintain confidentiality. In the event of discrepancies or omissions, the company’s Board of Directors retains the right of final interpretation of the updated rules, which take effect upon approval by the Board.