Chapter 1 General Principles
Article 1
To strengthen the decision-making function of the Board of Directors of Hongrun Construction Group Co., Ltd. (hereinafter referred to as "the Company"), ensure pre-audit and professional audit, and guarantee effective supervision of the management by the Board, as well as to improve the corporate governance structure, the Company establishes the Audit Committee of the Board of Directors and formulates these rules in accordance with the relevant provisions of the Company Law of the People's Republic of China (hereinafter referred to as "the Company Law"), the Securities Law of the People's Republic of China, the Guidelines for the Governance of Listed Companies, the Measures for the Administration of Independent Directors of Listed Companies, the Self-Regulatory Guidelines No. 1 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Main Board Listed Companies, and the Articles of Association of Hongrun Construction Group Co., Ltd. (hereinafter referred to as "the Articles of Association").
Article 2
The Audit Committee is a specialized working body established by the Board of Directors, primarily responsible for reviewing the Company's financial information and its disclosure, supervising and evaluating internal and external audit work, and internal control.
Chapter 2 Composition
Article 3
The Audit Committee consists of three directors, and its members must not hold senior management positions in the Company. Independent directors must constitute the majority, and at least one independent director must be a professional accountant. Employee representatives from the Board of Directors may become members of the Audit Committee.
Article 4
Members of the Audit Committee are 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 5
The Audit Committee shall have a chairperson (convener) who is a professional accountant among the independent directors, responsible for presiding over the committee's work.
Article 6
The term of the Audit Committee members is consistent with that of the Board of Directors. Upon expiration of their term, they may be re-elected. Members shall not be dismissed without cause unless circumstances arise as stipulated in the Company Law, Articles of Association, or these rules. If a member ceases to be a director, they automatically lose their committee membership, and the number of members shall be supplemented according to Articles 3 to 5 above.