Independent Opinions of the Supervisory Committee on the Company&39;s Compliance with Regulations The Supervisory Committee makes sure that the decision-making procedures for the Company&39;s major issues conform to the provisions of the Articles of Association, and that the Company has established a necessary internal control system. The Supervisory Committee provides independent opinions on whether the Board of Directors and its members and the senior executives of the Company devote their efforts to the performance of their duties, whether they comply with the stock listing rules of the place where the Company's securities are listed, whether they violate the laws, regulations and the Articles of Association, and whether they harm the interests of the Company, the Company&39;s shareholders and employees. The Supervisory Committee supervises the Company&39;s major investment projects, and provides independent opinions on whether the major investment projects can be implemented properly as per the resolutions of the Board of Directors and applicable requirements. Independent Opinions of the Supervisory Committee on the Company&39;s Financial Conditions The Supervisory Committee supervises the implementation of the Company&39;s financial management system on an annual basis. By interviewing the management and accessing relevant materials, the Supervisory Committee provides opinions on whether the Company has made its best efforts in reinforcing basic financial management, improving financial rules and regulations, upgrading the budget management system, establishing a sound fund supervision system, enhancing financial risk management, and ensuring the compliance of listed companies. The Supervisory Committee also offers suggestions to the Company&39;s Board of Directors and the management on strengthening the management of the Company&39;s accounts receivable and inventories, optimizing the management of funds and target cost, and increasing the gross profit margin, which are highly valued by the Company. Moreover, the Supervisory Committee reviews the Company&39;s financial report and provides independent opinions on the authenticity and reliability of the Company&39;s financial budget report, final report, annual report, interim report and quarterly report. Independent Opinions of the Supervisory Committee on the Company&39;s Purchases and Sales of Assets The Supervisory Committee provides independent opinions on whether the Company has made decisions on and conducted purchases and sales of assets in compliance with relevant procedures, whether the transaction price is reasonable, whether any insider trading has occurred, and whether any action has caused harm to the shareholders&39; rights and interests and losses of the Company&39;s assets. Independent Opinions of the Supervisory Committee on the Company&39;s Connected Transactions The Supervisory Committee supervises the Company&39;s connected transactions. It provides independent opinions on the fairness of connected transactions conducted during the reporting period each quarter and each year, whether any action has caused harm to the Company&39;s interests and shareholders&39; rights and interests, whether each connected transaction is made in compliance with the listing rules of the place where the Company&39;s securities are listed, and whether the obligation of information disclosure has been fulfilled.