CHIA TAI ENTERPRISES INTERNATIONAL LIMITED has amended its Audit Committee Terms of Reference, originally established on 15 September 2014 and previously revised on 5 June 2015 and 11 December 2018. The updated version, effective 10 November 2025, outlines membership criteria that specify only non-executive directors may serve, with the majority being independent non-executive directors possessing appropriate professional qualifications or accounting expertise.

The Terms of Reference describe procedures for scheduling Audit Committee meetings at least twice a year and outline how members and external auditors may request additional meetings. Senior accounting and financial staff are expected to attend, and independent sessions with the external auditor and management are encouraged. Detailed procedures address notice requirements, record-keeping, and conflict-of-interest protocols.

Under the amended guidelines, the Audit Committee holds the authority to investigate any activity within its scope and is empowered to seek information from employees and third-party professionals when necessary. In addition, the Audit Committee must report suspected fraud or internal control failures to the board of directors.

The revised document highlights the Audit Committee’s role in recommending appointments or reappointments of external auditors, assessing their independence, and overseeing the engagement of non-audit services. Responsibilities extend to reviewing the integrity of financial statements and reports, monitoring the effectiveness of risk management and internal control systems, and coordinating internal and external audit efforts. The new Terms of Reference also include provisions for confidential reporting by employees regarding possible misconduct and make clear the Audit Committee’s obligation to review such cases and supervise any needed follow-up.

Further guidelines address reporting procedures, mandating timely communication of findings to the board. In all tasks, sufficient resources and access to independent professional advice are to be provided for the Audit Committee to fulfill these responsibilities effectively.