Zangge Mining Completes Major Revision of Internal Control System

To further improve the company’s internal management system and operational mechanisms, enhance corporate governance, promote institutionalization, standardization, and scientific management of various processes, and facilitate sustainable development, Zangge Mining has, since early October 2022, through multiple careful organizational efforts, repeated discussions, and review by three levels of authority, completed a major revision and addition to the 2017 version of the company’s internal control system.

The revision added 46 new regulations, including the “Rules of Procedure for the Board Audit Committee,” “Management System for Holding Subsidiaries,” “Development Strategy Management Measures,” “Internal Reporting Management Measures for Material Information,” “General Manager’s Work Rules,” “Compensation and Performance Management Measures for Senior Management,” “Fund Management Measures,” “Environmental, Social and Corporate Governance (ESG) Management System,” “Accountability System for Major Errors in Annual Report Disclosure,” “Company Articles of Association,” “Rules of Procedure for Shareholders’ Meetings,” “Compensation and Performance Management System for Directors and Supervisors,” “Board Meeting Rules,” “Independent Directors’ Working Rules,” and “Information Disclosure Management System,” forming a relatively comprehensive and scientific system to ensure that internal controls are tightly and thoroughly established.

A highlight of this revision is the introduction of the “Environmental, Social and Corporate Governance (ESG) Management System,” demonstrating the new board’s courage and determination to implement ESG principles in the company’s operations, development, strategic planning, and investment processes. The issuance and implementation of the “Fund Management Measures” marks the end of the historical practice of the listed parent company following subsidiary regulations for fund management.

Through this revision, the newly added and improved internal control measures clearly define employee behavior standards, promote orderly and law-abiding internal management, further clarify responsibilities, and lay a solid foundation for standardized corporate management.