On December 29, 2023, the 7th Meeting of the Standing Committee of the 14th National People’s Congress passed the Second Amendment to the Company Law of the People’s Republic of China and the Twelfth Amendment to the Criminal Law of the People’s Republic of China. The implementation of these two laws will have a profound impact on the management and operation of the Company. In order to further improve the Company’s criminal compliance work and make the Company’s operation and management behavior comply with the upcoming Company Law, on April 2, 2024, the Company organized more than 80 senior executives, chief and deputy managers of first-level departments and business backbones from all subsidiaries, sub-subsidiaries and holding companies to hold on-site and online law popularization training seminars on Criminal Risk Warning of Listed Companies and Corporate Compliance and Interpretation of the Revised Key Points of the New Company Law.

The Company invited two lawyers, Yang Jiao and Pu Wenqian from Qinghai Shuren Law Firm, to give lectures on Criminal Risk Warning of Listed Companies and Corporate Compliance and Interpretation of the Revised Key Points of the New Company Law respectively. Through data analysis, interpretation of legal provisions, case analysis, etc., Ms. Yang Jiao gave a detailed explanation from four aspects: the impact of national policies and legislation on listed companies, the analysis of criminal data of listed companies, common crimes and cases, and corporate compliance. In the seminar, the lawyers introduced the industry distribution, the distribution of criminal types, and the distribution of criminal crimes of listed companies involved in criminal matters from a macro perspective, and specifically interpreted the criminal composition and cases of common crimes. They also focused on how enterprises can make sure of criminal compliance and how to apply the corporate compliance non-prosecution system. Based on the actual situation of listed companies, Ms. Pu Wenqian interpreted the purpose and characteristics of the revision of the Company Law, the reform of the company’s capital system, the rights and obligations of shareholders, corporate governance, the responsibilities and obligations of directors, supervisors and senior executives, and the facilitation of company registration through the comparison of the old and new laws and the analysis of typical cases. The newly revised Company Law has many adjustments that cover a wide range of areas. Next, the Company will combine the newly revised Company Law and the actual situation of the Company, sort out the capital contribution of the shareholders of each subsidiary and sub-subsidiary, and adjust the Articles of Association and relevant internal control systems.

This special law popularization training helps employees understand and master the latest provisions of the two laws, and provides support for the Company’s next operation and management decisions. The training is rich in content and in line with the actual situation of the Company, which helps to enhance the Company’s risk prevention awareness, promote the Company’s compliance progress, and lay a solid foundation for the Company’s sustainable and healthy development.