Beijing Enterprises Holdings Limited has formalised the establishment of a Strategy and Investment Committee under its Board of Directors, integrating strategic oversight with the former Investment Committee’s remit.

The revamped committee will: 1. Conduct medium- to long-term strategic research, evaluate business direction and recommend major strategic adjustments. 2. Review and assess all significant investment, financing, M&A, capital operations and asset-disposal proposals that require Board approval, including feasibility, risk and return analysis. 3. Supervise the execution, risk control and effectiveness of approved strategic plans and major projects, alongside the company’s investment-related management systems. 4. Report annually to the Board and handle any additional strategy or investment matters authorised by the Board.

Composition and governance safeguards include: • A minimum of three directors, always an odd number, with at least one independent non-executive director. • Members nominated by the Nomination Committee and approved by the Board; the Chair is elected from among members and confirmed by the Board. • The committee must meet at least twice a year, with a quorum of more than half the members. • Decisions require a majority vote; the Chair holds a casting vote in the event of a tie. • The Company Secretary acts as committee secretary, overseeing meeting materials, minutes and archival.

Authority provisions allow the committee to request internal information, engage external advisers, attend relevant meetings and conduct interviews to fulfil its mandate.

The Terms of Reference take effect upon Board approval and will be administered and interpreted by the Corporate Governance Department.