We have established an audit committee with terms of reference in compliance with Rule 3.21 of the Listing Rules and paragraph D.3 of the Corporate Governance Code and Corporate Governance Report as set out in Appendix 14 to the Listing Rules. The audit committee consists of Ms. DU Jiliu, Dr. LIN Shoukang and Dr. MEI Lehe, with Ms. DU Jiliu being the chairwoman of the committee.

The primary function of the audit committee is to assist our Board in providing an independent view of our financial reporting process, internal control and risk management system, overseeing the audit process and performing other duties and responsibilities as assigned by our Board, which includes, amongst other things:

• Proposing to the Board of Directors the appointment and replacement of external audit firms
• Supervising the implementation of our internal audit system
• Liaising between our internal audit department and external auditors
• Reviewing our financial information and related disclosures
• Other duties conferred by the Board of Directors

We have established a remuneration and appraisal committee with terms of reference in compliance with Rule 3.25 of the Listing Rules and paragraph E.1 of the Corporate Governance Code and Corporate Governance Report as set out in Appendix 14 to the Listing Rules. The remuneration and appraisal committee consists of Dr. LIN Shoukang, Mr. LV Shiwen and Ms. DU Jiliu, with Dr. LIN Shoukang being the chairman of the committee.

The primary function of the remuneration and appraisal committee is to develop remuneration policies of our Directors, evaluate the performance of and make recommendations on the remuneration packages of our Directors and senior management, and evaluate and make recommendations on employee benefit arrangements, which includes, amongst other things:

• Establishing, reviewing and making recommendations to our Directors on our policy and structure concerning remuneration of our Directors and senior management
• Determining the terms of the specific remuneration package of each Director and members of senior management
• Reviewing and approving performance-based remuneration by referring to corporate goals and objectives resolved by our Directors from time to time
• Other duties conferred by the Board of Directors.

We have established a nomination committee with terms of reference in compliance with paragraph B.3 of the Corporate Governance Code and Corporate Governance Report as set out in Appendix 14 to the Listing Rules. The nomination committee consists of Dr. LIN Shoukang, Mr. LV Shiwen and Dr. MEI Lehe, with Dr. LIN Shoukang being the chairman of the committee.

The primary function of the nomination committee is to make recommendations to our Board in relation to the appointment and removal of Directors, which includes, amongst other things:

• Reviewing the structure, size and composition of our Board on a regular basis and making recommendations to the Board regarding any proposed changes
• Identifying, selecting or making recommendations to our Board on the selection of individuals nominated for directorships
• Assessing the independence of our independent non-executive Directors
• Making recommendations to the Board on relevant matters related to the appointment, re-appointment and removal of our Directors
• Other duties conferred by the Board of Directors.

We have established a strategy committee consisting of Mr. LV Shiwen, Dr. LIN Shoukang and Mr. PAN Fei, with Mr. LV Shiwen being the chairman of the committee. The primary duties of the strategy committee are to study and advise on the long term strategy and operation plans of our Group. The strategy committee will assist the Board, in conjunction with our management, in addressing our Company’s overall mission, vision and strategic direction. Areas of focus will include: providing the Board and management, as applicable, with input and recommendations with respect to key strategic initiatives and major R&D programs and partnerships, assisting the management in establishing a strategic planning process, identifying and addressing organizational challenges and evaluating strategic alternatives.