Taihu Snow has established a standardized corporate governance structure and scientific rules of procedure in strict accordance with the requirements of the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Corporate Governance Guidelines for Listed Companies, the Guidelines on the Articles of Association of Listed Companies, the Stock Listing Rules of the Beijing Stock Exchange and other relevant laws and regulations as well as normative documents. It has formulated rules and systems in line with the requirements for the development of the Company, and created an effective mechanism where the powers and responsibilities of the authority, decision-making, supervisory, and executive bodies are clear, coordinated, and effectively balanced, thus constantly improving its governance level.

Taihu Snow has established a corporate governance structure consisting of the General Meeting of Shareholders, the Board of Directors, the Supervisory Board, and the Management Team. The General Meeting of Shareholders has the decision-making rights provided by laws, regulations, and the Company's Articles of Association, and exercises its voting rights on major issues such as the Company's business policies, investment plans, and the election of senior executives in accordance with the law. The Board of Directors is accountable to the General Meeting of Shareholders and exercises the Company's operational management rights according to the law. It is also the highest decision-making body for managing economic, environmental, and social issues. The Board of Directors consists of four specialized committees: the Strategy Committee, the Nomination Committee, the Remuneration and Evaluation Committee, and the Audit Committee. These committees provide professional opinions and recommendations for the Board's decisions. Among them, independent directors in the Audit Committee, Nomination Committee, and Remuneration and Evaluation Committee constitute the majority and also serve as the chairpersons of these committees. The Supervisory Board, as a supervisory body, is accountable to the General Meeting of Shareholders, and effectively oversees the Company's finances as well as the legality and compliance of the Company's directors and senior management in performing their duties, so as to protect the legitimate rights and interests of the Company and its shareholders.

For details on the Company's governance structure, governance mechanisms, shareholding structure, and information about the controlling shareholders and actual controllers, please refer to the Suzhou Taihu Snow Silk Co., Ltd. 2023 Annual Report.

The Company convenes and holds shareholders' meetings in strict accordance with the Rules for the Shareholders' Meetings of Listed Companies published by the China Securities Regulatory Commission and the Company's Rules of Procedure for Shareholders' Meetings, and holds meetings of the Board of Directors and the Supervisory Board in accordance with the requirements of the Rules of Procedure for the Board of Directors and the Rules of Procedure for the Supervisory Board. The Company strictly adheres to the relevant provisions on voting matters and voting procedures, protecting the legitimate rights and interests of the Company and its shareholders.

The Company strictly follows the conditions and procedures specified in the Articles of Association to appoint directors, ensuring openness, fairness, justice, independence, and diversity in the selection of directors. We are committed to building a diversified Board, selecting members with professional backgrounds in business management, marketing, financial management, law, etc. This approach promotes the exchange and integration of various perspectives and experiences, leveraging the strengths of the directors and compensating for their weaknesses, thus ensuring the scientific and effective nature of Board decisions. The Company currently has 9 members on its Board of Directors, including 6 non-independent directors and 3 independent directors, of which 4 are female directors. The Board members of the Company have experience in risk prevention and control, and can effectively assist the Company in identifying, preventing, mitigating, and managing risks.

The Company strictly complies with the relevant requirements of the Securities Law of the People's Republic of China and the Information Disclosure Management Measures and other regulatory documents. It rigorously fulfills the duty of information disclosure, and ensures the truthfulness, accuracy, completeness, and timeliness of the information disclosed. The Company designates Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily, and cninfo.com as the designated newspapers and websites for company information disclosure, ensuring that all its shareholders have an equal opportunity to access information. We also persistently strengthen investor relations management and continuously improve the diversification of investor communication channels. In 2023, there were no false records, misleading statements, material omissions or other improper disclosures in the Company's information disclosure. We also keep a close eye on the public opinion environment and market trading conditions to effectively protect the legitimate rights and interests of investors.