Sun.King Power Electronics Group Limited (00580.HK)

The Company is committed to maintaining a high standard of corporate governance. It is believed that high standards of corporate governance provide a framework and solid foundation for the promotion of high standards of accountability, transparency and responsibility to the shareholders of the Company (the “Shareholders”). The Company has adopted the Corporate Governance Code and Corporate Governance Report (the “Corporate Governance Code”) as set out in Appendix 14 to the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”) as its own code to govern its corporate governance practices. The Board also reviews and monitors the practices of the Company from time to time with the aim of maintaining and improving the standard of corporate governance practices.

The Board is responsible for leading and controlling the Company and overseeing the Group’s businesses, strategic decisions and financial performances. The chairman of the Board is responsible for the overall corporate strategy, planning and business performance of the Group, and for the implementation of each resolution put forward at general meetings and Board meetings, while the chief executive officer is responsible for overseeing the overall business of the Group, including devising and implementing business and development strategies and targets. Major corporate matters that are specifically delegated by the Board to the senior management include preparation of interim and annual reports and announcements, execution of business strategies and initiatives adopted by the Board, implementation of adequate systems of internal controls and risk management procedures and compliance with relevant laws, rules and regulations.

The Board has established four committees, namely the audit committee, the remuneration committee, the nomination committee and the investment committee, to supervise various matters of the Group. To establish effective communication channels between each committees and the management, the Company established an internal coordination and support team to facilitate access to more independent and objective information for the Directors

The audit department of the Company regularly conducted comprehensive audit on the internal control system of the Company and its subsidiaries and submitted the “Report on Internal Control” for the Board’s review. The Board is responsible for the internal control system and reviewing its effectiveness and it also reviews the efficiency of the internal control system of the Group, which covers all material controls including financial, operational and compliance controls and risk management functions, to prevent unauthorized use or sale of assets, to ensure the proper filing of accounting records and the providing of reliable financial information for internal use or for release, and to ensure that the applicable laws, regulations and rules are complied with. The procedure reasonably ensures the non-occurrence of significant error, loss or fraud.