JOINN Laboratories (China) Co., Ltd. has released its updated Terms of Reference for the Audit Committee, aiming to strengthen corporate governance by standardizing the committee’s responsibilities and procedures. According to the document, the Audit Committee will consist of at least three non-executive directors, with independent directors forming the majority. At least one independent director must possess accounting expertise in compliance with Shanghai Stock Exchange and Hong Kong Stock Exchange requirements.

In addition to overseeing external audit independence and objectivity, the committee will guide internal audit, monitor the accuracy of financial statements, and evaluate the company’s risk management and internal control frameworks. The document highlights that the internal audit department reports directly to the committee, and that the Audit Committee will handle the appointment and dismissal of external auditors and key financial positions.

The new Terms of Reference also introduce responsibilities for supervising significant sustainability matters, including business philosophy, strategies, and governance. This involves reviewing policies on environmental, social, and governance processes, as well as producing annual sustainability disclosures in accordance with applicable listing and regulatory rules. The committee is further authorized to hire external advisers when necessary, subject to board approval.

The provisions clarify meeting procedures, quorum requirements, voting methods, and confidentiality obligations. The updated Terms of Reference become effective upon approval by the board of directors, aligning the committee’s operations with applicable laws, regulations, and the Corporate Governance Code.