Huaxin Building Materials Releases Revised Audit Committee Charter to Enhance Financial Governance

Huaxin Building Materials Group Co., Ltd. has adopted a comprehensive set of “Rules of Procedures for the Audit Committee to the Board of Directors,” formalising the committee’s structure, authority and work flow to tighten oversight of financial reporting, auditing and internal control.

The newly approved charter establishes an Audit Committee composed of five non-executive directors, with independent directors holding a majority and at least one member possessing accounting or professional financial expertise. The committee chairman must be an independent director with substantial experience in finance or accounting.

Key responsibilities include: • Recommending the appointment, re-appointment or removal of external auditors; negotiating their remuneration; and monitoring their independence and performance. • Reviewing interim and annual financial statements, focusing on major accounting judgements, policy changes, going-concern assumptions and any risk of fraud or material misstatement before submission to the board. • Supervising the company’s internal audit function, approving annual audit plans, assessing audit findings and ensuring prompt rectification of identified deficiencies. • Overseeing the effectiveness of risk management and internal control systems, including financial controls, and reviewing self-assessment and external audit reports on internal control. • Managing related-party transactions and proposing the appointment or dismissal of the head of finance.

The committee is authorised to obtain independent professional advice at the company’s expense and will conduct at least one private session annually with both the external auditor and the head of internal audit. Meetings must be held at least quarterly, require a two-thirds quorum and pass resolutions by simple majority.

The charter takes effect upon board approval and mandates an annual review of both the committee’s performance and the adequacy of the procedures, ensuring continual alignment with applicable laws, stock-exchange regulations and the company’s Articles of Association.