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                Corporate Governance

                Improving corporate governance is the foundation of enhancing the core competitiveness of companies and Wasu has set up a modern corporate governance framework consisting of general meeting of stockholders, board of directors, board of supervisors and high-level executives, according to general guidelines from Chinas corporate law, securities law, other relevant laws and regulations as well as modern financial and corporate systems to form a scientific, decision-making, and powerful executive and an effectively supervised operation mechanism, which balances the three organs of power, decision-making, and supervision with the executives.

                The board of directors has set up specific committees. The board of directors, board of supervision and high-level executives play their own roles in balancing each other and coordinate with each other under the framework of corporate charter and rules of procedures. Wasu will continue to improve its governance structures, enhance risk management and internal control, upgrade its management levels as well as operation performance to create stable and sustainable return of investment for shareholders.