Ningbo Joyson Electronic Corp. has formally released Terms of Reference for its Audit Committee to align with applicable regulations, including the Company Law of the People’s Republic of China and the Hong Kong Listing Rules. The document clarifies that the Audit Committee, composed of three non-executive directors (including two independent non-executive directors), is responsible for reviewing the company’s financial information, overseeing audit procedures, and evaluating internal controls.

The Terms of Reference detail that the Audit Committee is required to convene regular meetings at least once every quarter, with additional sessions called as needed. Members are expected to ensure the accuracy and completeness of disclosures, monitor both external and internal audit activities, and confirm adequate internal control systems and risk management processes. The committee also has a mandate to recommend the appointment or dismissal of the company’s external auditors and is tasked with examining reports on any identified audit issues.

Under these guidelines, the Audit Committee supervises the preparation of financial reports, closely reviews any material accounting adjustments, and follows up on identified concerns. The committee further ensures open communication with external auditors and arranges for non-audit services where necessary. It holds authority to employ external advisory resources at the company’s expense, reinforcing independent oversight.

In addition, the Terms of Reference specify information disclosure requirements, stipulating that the committee’s annual performance of duties be published on the Shanghai Stock Exchange website simultaneously with the annual report. Any significant matters uncovered by the Audit Committee that meet disclosure thresholds must be reported promptly to fulfill regulatory requirements.

These measures highlight Ningbo Joyson Electronic Corp.’s focus on strengthening corporate governance and transparency. The documented guidelines confirm the company’s commitment to maintaining robust internal audit practices, promoting accountability, and protecting shareholders’ interests.