The training session on the internal control and compliance management of related transactions of Kangda Group concluded

       On the morning of August 14, 2020, the Human Resources Department, the Internal Audit Department, and the General Department of Kangda Group held a special training session on the internal control and compliance management of related transactions in the headquarters of the Group. The training was aimed to help avoid all kinds of compliance risks caused by the inaccurate definition of related parties, the unreasonable pricing of related transactions, and the interruption of related transaction activities in the related transaction control process of the Group and of the enterprises under its jurisdiction. Lei Le, an expert and director of Ernst & Young, and Wang Jingru, the manager of Ernst & Young, were specially invited to the training session to introduce the specialized knowledge of listed companies' risk prevention in related transactions. Leaders of the Group in Chongqing, other leaders from all functional departments at the deputy director level and above, and relevant staff members from the Accounting Department and the General Department received training in the conference room on the sixth floor. Besides, many other leaders, totaling nearly one hundred including Chairman Li Zhong, President Duan Linnan, Independent Director of Kangda EP Zhou Jinrong, and Company Secretary Huang Yinsheng, as well as other leaders of the Group, the general managers of all the operating companies, and the CFOs from outside Chongqing attended the training through telecommunication. 
       At 9:00 in the morning, Wang Jian, the director of the Internal Audit Department presided over a simple opening ceremony of the training session. After that, two experts started to give their lectures. The experts introduced from five aspects including HKEX's regulation policies in 2020, learning objectives, key points of the internal control and compliance of related transactions of Hong Kong's listed companies, typical problems in the internal control and compliance of related transactions of Hong Kong's listed companies, and related transaction management process and related forms for reference. The experts' introductions were easy to understand, as they directly used multiple practical cases closely related to what they introduced to demonstrate risks and prevention and control measures in the whole process of related transactions in a clearer manner. 
       During the training, the participants actively interacted with the experts to solve problems in their work. In response, the experts gave solutions to their problems by combining practical cases and key points of compliance. The lectures have been of great help to the participants.
       After the lectures, Independent Director of Kangda EP Zhou Jinrong and Company Secretary Huang Yinsheng made their respective speeches. They urged all the training participants to reinforce their learning of the specialized knowledge of related transactions and to ensure that the companies' work in all aspects was in line with the standards for listed companies. Afterward, Chairman Li Zhong gave a speech to summarize the training session. Li expressed his hopes and put forward requirements for future work:
       I. All Kangda people shall be proficient in the identification of related transactions of listed companies and enhance risk awareness. As stable development ensures great achievements, efforts shall be made to promote the steady and healthy development of Kangda EP. 
       II. Kangda people shall not be fearless due to ignorance or be precipitance. Reckless moves shall never exist in the development of Kangda EP.
       III. Strict measures shall be taken to guarantee that no work can avoid and circumvent supervision.
       IV. If you don't understand the rules, please study hard to master them. Lectures on relevant knowledge can be held on a regular basis to strengthen Kangda people's learning of and their exchanges about the rules. An efficient operation mechanism can be surely established through Kangda people's continuous learning of the rules and their application of the rules to their practical work.
       V. In the face of external challenges (the COVID-19 pandemic and floods) and internal troubles (the identification and control of internal risks), efforts shall be made to improve management awareness, overcome difficulties along the way, and realize efficient company operation. Kangda people shall stay strong confronted with the business competition, and Kangda EP shall strengthen enterprise management and address existing problems step by step. 
       VI. Kangda people shall strengthen the awareness of the loyalty to the Group and comply with the requirements for listed companies to ensure the steady growth of the Group.

       After Li's speech, the session concluded. Short as the training session was, all the participants have realized the importance of risk prevention and control in related transactions and their compliance awareness has been raised after the training. In addition, Kangda people's consciousness of red lines of risk prevention and control in related transactions has been further strengthened. As a saying goes, "It is better to take precautions beforehand." Hence, this training session has laid solid foundations for the promotion of the Group's work and business development in the future. Henceforth, such kind of training sessions on specialized knowledge will be held regularly.