The company continuously strives to improve its corporate
governance structure and decision-making, implementation and supervision
systems, intensify the self-selection of the Board of Directors, give the Board
full rights of policy and management, create a Strategy Committee and Audit Committee,
strengthen control and supervision of the wholly-owned company and its subsidiaries,
and enhance construction of the investment, finance, human resources,
purchasing, engineering and security systems. Having been selected as the “pilot
unit of the normative system on internal control of listed companies” by CSRC,
the company has vigorously optimized its internal control and risk management
system, carried out a series of efforts
toward internal control and optimal functioning, strengthened its efficiency
monitoring, financial and audit supervision to promote overall screening and
risk evaluation, revised and made amendments to the company’s 165 management
and control systems, optimized 730 work flows, devised the “Internal Control
and Management Guide” (which includes over 200,999 words), established
long-term mechanisms of risk control, and has taken the lead in the hotel
industry to issue the Internal Control Evaluation Report and Corporate Social
Responsibility Report for five consecutive years; all of these actions taken by
the company ensure synchronous improvement of benefit growth, brand maintenance
and governance. The company has won the Gold Round Table Prize for Best Board
of Directors of Chinese Listed Companies, and is the only listed company in
China’s tourism industry to have received this prize, been named one of the “Top
100 Board Governance of Chinese Listed Companies,” and been added to the SSE
Corporate Governance Index (SSE000019), thereby becoming a model of outstanding
corporate governance performance.