ZGM Completes Major Revision of its Internal Control System

In order to further improve the Company's internal management system and operation mechanism, improve the level of corporate governance, promote the institutionalization, standardization and scientificity of various tasks, and facilitate the sustainability of the Company, after the careful organization and repeated discussion by relevant departments as well as reviewing by the three-level authorities of the Company since the beginning of October 2022, the major revision and addition of the internal control system 2017 of the Company has now been completed.

This Revision adds 46 new rules and regulations, including the Working Rules of the Audit Committee of the Board of Directors, Holding Subsidiary Management System, Measures for the Management of Development Strategies, Measures for the Management of Internal Reporting of Major Information, Working Rules of the General Manager, Measures for Senior Executive Performance Compensation Management, Measures for Funds Management, Management System for Environmental, Social and Corporate Governance, Accountability System for Major Error in Annual Report Information Disclosure, Articles of Association, Rules of Procedure for General Meetings, Performance Management System for Remuneration and Allowances of Directors and Supervisors, Rules of Procedure of the Board of Directors, Working Rules for Independent Directors, and Management System for Information Disclosure Affairs, forming a relatively scientific and complete institutional system and ensuring a solid and tight control on rules and regulations. The highlight of this Revision is the addition of the Management System for Environmental, Social and Corporate Governance, which demonstrates the courage and determination of the new Board of Directors to implement ESG concepts in the company’s practice, development process, strategic planning and investment process. The release and implementation of the Measures for Funds Management has ended the history of the same system implementation of the listed parent company by referring to that of the subsidiary.

The revision, addition and improvement of the internal control system has clarified the code of conduct of employees, better promoted the regulated and institutional internal management, further clarified responsibilities, and laid a solid foundation for the standardized management of the Company.