2014 shareholders’ joint audit closing session was held in the Meeting Room, 4/F Main Office Building on the morning of June 13^th. All members of Shareholders’ Audit Team, FREP OOP, FREP major functional chiefs and members of Audit Coordinating Team were present at the meeting.

It took 5 weeks for shareholders’ audit site work, drawing high attention from FREP OOP and getting active support from people at all levels, which enabled the Audit Team to complete all site work in a safe and timely manner as planned. Madam Ke Yuyun, Audit Team Lead, extended heartfelt thanks to functional departments and teams of FREP for their great support and cooperation.  

This is the third shareholders’ joint audit since the foundation of FREP. It is a comprehensive health examination of economic and business management situation over the past three years. The audit issued altogether 41 audit work papers. By the audit, shareholders’ audit team perceived that FREP was a lean structure with high efficiency and internal control procedure and process were good on the whole, in particular, business domains like production, technique, sales and so forth notwithstanding some business fields to be optimized and improved.

President Mr. Lu Dong extended gratitude to auditors for their hard work. He said, audit helped the Company to identify gaps in production and business management and enabled us to learn from best practices and experience. It was not only a process of inspection, learning and improvement, but also a priceless treasure. Next step was for the Company to collate the audit findings item by item: one, to seek solutions to close of the findings; second, close actions with responsibility and owner specified and spread the lessons learnt so as to prevent recurrence of audit findings.

According to the work plan of the audit team, the draft of audit report is expected to be released on June 25^th and the formal one will be issued by the end of August.