Chapter 1 General Principles
Article 1
To strengthen the decision-making function of the Board of Directors of Beijing Weitongli Electric Co., Ltd. (hereinafter referred to as "the Company"), ensure prior and professional audits, and guarantee effective supervision of management, these implementation rules are formulated in accordance with the Company Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies, the Guidelines for the Work of Audit Committees of Listed Companies, and the Articles of Association of Beijing Weitongli Electric Co., Ltd. (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
The Audit Committee is a specialized working body under the Board of Directors, primarily responsible for communication, supervision, and verification of internal and external audits, exercising the powers of the supervisory board as stipulated by the Company Law.
Article 3
Members of the Audit Committee should possess professional knowledge, work experience, and good professional ethics to ensure they dedicate sufficient time and energy to fulfill their responsibilities diligently and effectively supervise and evaluate the internal and external audit work of the Company, promote the establishment of effective internal controls, and provide truthful, accurate, and complete financial reports. Members should continuously enhance their learning and training in law, accounting, and regulatory policies to improve their performance capabilities.
Article 4
The Company shall provide necessary working conditions and sufficient resource support for the Audit Committee, equipping dedicated personnel or institutions to undertake daily tasks such as liaison, meeting organization, material preparation, and file management for the Audit Committee. The management and relevant departments of the Company must cooperate with the Audit Committee in performing its duties. Directors and senior management must provide truthful information and materials to the Audit Committee and shall not obstruct the exercise of its powers, ensuring that the Audit Committee's work is not interfered with. The costs necessary for the Audit Committee to exercise its powers shall be borne by the Company. The Company shall disclose the annual performance of the Audit Committee concurrently with its annual report, mainly including the fulfillment of its responsibilities and the convening of Audit Committee meetings.
Chapter 2 Composition of the Audit Committee
Article 5
The Audit Committee shall consist of five members. Members of the Audit Committee must be directors who do not serve as senior management in the listed company, with independent directors constituting more than half, and an independent director with accounting expertise serving as the convener.
Article 6
Members of the Audit Committee shall be nominated by the Chairman, more than half of the independent directors, or one-third of all directors, and elected by the Board of Directors.
Article 7
The Audit Committee shall have one chairperson (convener), who shall be an independent director with accounting expertise, responsible for presiding over the committee's work. The chairperson shall be elected by the Board of Directors.
Article 8
The term of office for Audit Committee members shall be the same as that of other directors, with each term not exceeding three years. Upon expiration, members may be re-elected, but independent directors may not serve continuously for more than six years. If a member resigns or otherwise ceases to be a director, they shall automatically resign from the Audit Committee upon ceasing to be a director. If the resignation of a member results in the number of Audit Committee members falling below the legal minimum or lacking accounting professionals, the original members shall continue to perform their duties until new members are appointed.
Article 9
The Audit Committee shall have an internal audit department, which serves as a daily operational body, reporting to the Audit Committee and responsible for daily liaison and meeting organization.