COSCO International strongly believes that good corporate governance would build up an orderly, effective and transparent operational system, which will bring about operational efficiencies of the Company as a whole and therefore to achieve the principle of the Company, namely maximising shareholders' values. The board of Directors (the "Board") believes that high standards and appropriately rigorous corporate governance practices are essential for the Company to enhance its accountability and transparency, and achieve a balance of the interests of the public and the interests of its stakeholders, inter alia, shareholders, customers, employees, and our investment partners.

To ensure good corporate governance, the Board adopted the Corporate Governance Statement of Policy which was compiled with reference to international best practices and applicable rules of the Stock Exchange by the Company at its meeting held on 3rd March, 2005 which will be updated from time to time. The Policy not only provides guidance on how the corporate governance principles are applied to the Company, but also states clearly the responsibilities and terms of reference of the Board. The Board set up six board committees, namely Audit Committee, Executive Committee, Remuneration Committee, Nomination Committee, Risk Management Committee and Investment Committee. Each of these committees has defined terms of reference covering its duties, powers and functions.

Apart from setting up the Board Committees, the Company also pays attention to the work of internal control by establishing the Internal Audit Department. The Internal Audit Department assists the Board and the Senior Management in risk management and in monitoring the compliance with applicable regulatory requirements and guidelines with a view to enhancing the effectiveness of our internal control mechanisms.

COSCO International also makes use of various channels to ensure the effective disclosure of information and financial transparency. It disclose details of the Company's discloseable transactions, price sensitive information and connected transactions to the shareholders, the Stock Exchange and other regulatory bodies in accordance with the listing rules. It also publishes announcements, circulars, annual and interim reports, disseminaties press releases and organizing press briefings for the Group's annual results and other significant matters, as appropriate. The Company also has a specific department responsible for dealing with investor relations and media enquiries so as to maintain direct communication with the shareholders of the Company ("Shareholders") and investors and ensure the transparency of the Company as appropriate.

Moreover, in order to strengthen the control and transparency of the Company, the Board adopted the Information Management Policy to regulate the information management of the Company.