Explanation of the Establishment of the Audit Committee and Other Specialized Committees
Huike Co., Ltd. (hereinafter referred to as "the Company") is applying for an initial public offering of shares and listing on the main board. In accordance with the "Administrative Measures for the Registration of Initial Public Offerings of Stocks" and "Guidelines for the Content and Format of Information Disclosure by Companies Issuing Securities No. 58 - Application Documents for Initial Public Offerings of Stocks and Listing," the Company's board of directors has established the Audit Committee, Strategic Committee, Nomination Committee, and Compensation and Assessment Committee. The main responsibilities, composition, and operational details of each specialized committee are as follows:
1. Audit Committee
According to the "Rules of Procedure for the Audit Committee," the Audit Committee is primarily responsible for exercising the powers of the supervisory board, guiding the work of the internal audit department, and overseeing communication, supervision, and verification of internal and external audits. The Audit Committee consists of three directors, including two independent directors, with at least one independent director being a professional accountant. The chairperson of the Audit Committee is an independent director with an accounting background, responsible for leading the committee's work. The current members of the Audit Committee are Lei Jian, Li Xu, and Feng Zhiwei, with Li Xu serving as the chairperson. The main responsibilities of the Audit Committee include:
(1) Supervising and evaluating external audit work, proposing the hiring or replacement of external audit firms;
(2) Supervising and evaluating internal audit work, coordinating internal and external audits;
(3) Reviewing the Company's financial information and its disclosure;
(4) Supervising and evaluating the Company's internal controls;
(5) Responsible for other matters as stipulated by laws and regulations, the Articles of Association, and authorized by the board of directors.