Tongyu Communication updates policies to enhance governance, transparency

Tongyu Communication has updated its auditor selection system, effective December 25, 2025, to enhance the transparency and integrity of its financial reporting. The revised policy mandates a rigorous selection process for audit firms, including evaluation criteria for quality management and audit fees, and requires board audit committee and shareholder approval for appointments. Key updates include strict conditions for re-appointment and a mandatory rotation of lead audit partners and signing certified public accountants after five years.

Concurrently, the company has revised its related party transaction decision-making system. This update, also effective December 25, 2025, defines the scope of related parties and transactions, establishing detailed approval thresholds and disclosure requirements. Transactions exceeding 300 million yuan or 0.5% of net assets, or 3,000 million yuan or 5% of net assets, require varying levels of independent director, board, and shareholder approval.

Further bolstering its governance, Tongyu Communication's updated external investment and guarantee management system, effective December 25, 2025, outlines clear procedures for risk assessment and approval. The policy specifies conditions for providing guarantees, including comprehensive due diligence on the borrower's creditworthiness and financial health. External guarantees are subject to approval by the board of directors or shareholders, depending on the value relative to the company’s assets and net assets, ensuring robust oversight of financial commitments.