On the morning of Oct. 11, 2010, SASAC convened in Beijing the conference on establishment and standardization of Board of Directors for China Poly Group Corporation. Executives attended the conference included: Shao Ning, Vice Director and member of the Party Committee of SASAC, Cui Shian, Chairmen of the Supervisory Board for Key Large State-Owned Enterprises, Xia Ceming, Director of 07 Office of the Supervisory Board for Key Large State-Owned Enterprises, Poly Group Corporation Chairman Chen Hongsheng, Poly Group President Zhang Zhengao, Worker Director Wang Xiaochao, Director Zhang Liansheng, External Directors Kong Lingjian, Zhang Zhong, Yu Bo, Xie Jiajin, Xu Donggen, manager members of Poly Group, and comrades from relevant departments and bureaus of SASAC and experimental offices of Board of Directors for Poly Group. The conference was presided by Deputy Director Zhang Zhiqiang. On behalf of SASAC, Vice Director Shao Ning issued letters of appointment to 5 External Directors for Poly Group, and made important speech. On behalf of Board of Directors of Poly Group, Chairman Chen Hongsheng made his statement, and President Zhang Zhengao, on behalf of Poly Group, signed service contracts with these External Directors. In his speech, Vice Director Shao Ning pointed out the importance of establishment and standardization of Board of Directors for SOEs, introduced the positive achievements gained on establishment and standardization of Board of Directors for SOEs. Shao Ning pointed out, Board of Directors of Poly Group has been established and performed its duties, succeeded in transforming from traditional “top leader” responsibility system to system of Board of Directors, Strengthened enterprise advantages, improved core competitiveness, and further promoted enterprise reform and development. Firstly, the combining advantages of External Directors and Non-external Directors should be given full play, and duties of Board of Directors should be practically implemented. Secondly, Board of Directors should grasp the direction of enterprise development by scientific decision-making, promoting enterprise reform and development, further perfecting and supervising implementation of enterprise development strategy and planning, promoting joint stock reform, promoting internal reform in terms of HR and remuneration management, improving Group’s governance on subsidiaries, supervising and guiding enterprise to establish total risk management system, and attaching importance to building corporate culture to improve enterprise’s soft power. Thirdly, Board of Directors should fulfill its duty of good governance over top management. Vice Director Shao Ning put forward requirements on establishment and standardization of Board of Directors for Poly Group, namely, firstly, further to perfect rules and regulations, to make sure effective operation of Board of Directors. Secondly, directors should faithfully fulfill their duties and obligations, and faithfully stand for benefits of investors. Thirdly, Group should duly handle the relationships between Board of Directors, managers, and Party Committee, forming into an enterprise governance mechanism featured by knock for knock, coordination and operation. Fourthly, communications at various levels should be strengthened. On behalf of Poly Group Board of Directors, Chairman Chen Hongsheng made his statement and expressed his heartfelt thanks to SASAC, to leaders of Board of Supervisors, and to all carders and staff of relevant departments and bureaus, and Poly Group Corporation for their support, help and trust. He pointed that: firstly, on the basis of present working condition, standardization and operation of Board of Directors should be continued paying attention to, stressing on handling affairs by rules and regulations, working hard for effectiveness of Board of Directors, and striving for a standard and efficient Board of Directors. Secondly, we should not be absent from our duties nor act in excess of authority, serving as qualified investors’ representatives, and earnestly implementing duties specified in Articles of Incorporation, proactively supporting and helping Managing team but never replacing them, striving for creation of a relaxed and harmonious working atmosphere, thus providing the Managing team with a good opportunity to fully discharge their duties and play a good role. Thirdly, communications at various levels should be strengthened. Fourthly, directors’ responsibilities and obligations should be implemented in real earnest. Fifthly, development is the most important and urgent for enterprise, so effectiveness of Board of Directors must be reflected in promoting the development of enterprise. Sixthly, we should particularly respect External Directors, support their work, frequently communicate with them, provide guarantee and service for their decision making on significant affairs, and care their livelihood.