1.CONSOLIDATE GOVERNANCE

COOEC adheres to the requirements of laws and regulations such as the Company Law and the Securities Law. COOEC takes "fully implementing consistency in modernized corporate system, ensuring scientific and effective decision-making, and achieving lawful and compliant operations" as its central ideology, takes improving the quality of listed companies as an opportunity, continuously explores ways to strengthen and improve corporate governance and actively constructs a governance model for state-owned listed companies with Chinese characteristics while considering the Company’s actual situation. COOEC defines rights by laws and regulations, executes rights scientifically and prudently, and authorizes rights effectively and reasonably. The "Four Meetings and One Layer" governance structure that consists of the General Meeting of Shareholders, Board of Directors, Board of Supervisors, Workers’ Congress and Management is constructed, with each decision-making organ performing its own duties and responsibilities, and coordinating with each other in a check-and-balance relationship.

With the strategic goals as foothold, value creation as starting point, lean management as origin of force, reformation and innovation as growth point, risk prevention and control as entry point, the Board of Directors of the Company gives full play to “strategy determination, decision-making and risk prevention and control” , effectively improving decision-making efficiency, constantly promoting governance system and governance capacity modernization, and leading the high quality development of the Company.

2.COMPLIANT OPERATION

The Company prepared and implemented the Compliance Management System, with the Chief Financial Officer & General Legal Counsel of the Company acting as Chief Compliance Officer. In this way, “three lines of defense” of compliance management comprising compliance leading management department, compliance special management department, and compliance supervision assessment department were constructed to carry out compliance management of the Company.

3. RISK MANAGEMENT

COOEC constantly improved the organization structure of risk management system, prepared the Risk Management System, Major Operation Risk Event Management Measures, the Procedures of Legal Construction & Internal Compliance and Risk Management Committee, standardized the risk management functions, working procedures and requirements, to ensure systematic and standard risk management work. It established three lines of defense of the business departments and business units, risk management and compliance management departments, internal supervision institutions of the Company and the affiliated units, which perform their own functions, to promote the risk management collaboratively.

4.REWARD SHAREHOLDERS

COOEC attaches great importance to the protection of shareholders' rights and interests and strictly adheres to laws and regulations such as the Company Law, Securities Law, and Work Guidelines for the Investor Relations Management of Listed Companies. The Company has established a sound mechanism for protecting shareholders' rights and interests, actively engaged in investor relations management, safeguarded shareholders' rights to information, participation and decision-making, and strengthened communication and cooperation with shareholders to jointly promote sustainable development of the Company.

5.ANTI-CORRUPTION

Adhering to the upright conduct and disciplines strictly, COOEC constantly carries out anti-corruption and integrity activities, constantly improves supervision and management system, establishes and improves the integrity risk prevention mechanism of major projects, and enhances the supervision of key engineering construction projects, striving to create honest and upright corporate environment.