2014 shareholder joint audit kickoff meeting was held in Quanzhou Office Building on May 12^th. Over 50 people were present at the meeting including audit leads of each shareholder, all members of shareholder audit team, FREP OOP, departmental GMs, controls representatives, etc. The meeting was chaired by Madam Ke Yuyun, 2014 shareholder audit team lead.

This was the third shareholder joint audit since the foundation of the joint venture. Sinopec took the lead in organizing this audit with participation of altogether 17 auditors from shareholders. The audit mainly covered economic activities and operation management situation dated from Jan. 2011 to Dec. 2013 and the site audit duration was from May 12^th to Jun. 13^th.

Mr. Li Yuhui, Sinopec Deputy Auditing Director, delivered the mobilization speech prior to the audit and elaborated on the audit object, scope, focus points, audit team members and grouping, audit time arrangement and plan, etc. Meanwhile, he also raised hope and expectations that the joint venture would support this audit and shareholder audit team to conduct audit. He was deeply convinced that the joint venture would take the opportunity of this audit to achieve further progress and development in operation management and economic benefit for sure under the leadership of Mr. Lu Dong and other members of OOP.

Mr. Lu Dong, FREP Board Chairman and President, on behalf of FREP, extended warm welcome to the leads and experts of shareholder audit team to carry out audit work in the Company and wished 2014 shareholder joint audit a success. He emphasized that this audit would be an overall examination of the Company with a wide range of coverage and a major opportunity for the Company to make progress and improvement. He hoped the Company would take this audit correctly. He required: first, all departmental GMs shall pay high attention to this audit by looking into, organizing, pushing forward and assisting this audit in person. Second, controls representatives from each department should fully support and assist this audit. Third, the Company would put the close and correction of audit findings on the agenda from then on so that supporting audit and issue correction would proceed simultaneously. Fourth, departments were expected to hold regular review meetings for audit concerns. Fifth, keep open-minded to accept the comments and recommendations raised by the audit team and learn best practices and good experience in risk precautions and control from shareholder. Sixth, FREP Internal Audit team and Finance Controls team were requested to coordinate internally; Human Resources and Admin Department and HSE Department should provide maximum support and guarantee in terms of logistics and safety. Each function should jointly provide a good working environment for this audit and ensure auditors’ personal safety when working in FREP.