The board of directors of Baoye Group Company Limited announced that after careful and thorough consideration of the requirements under the government policy and the relevant policy interpretation, Mr. Wang Youqing has resigned as independent non-executive director of the company with effect from 25 August 2014. Accordingly, Mr. Wang ceased to be a member of the Board's audit committee and the chairman of the Board's nomination committee. The Board proposed to appoint Mr. Li Wangrong ("Mr. WR Li") and Ms. Liang Jing as the independent non-executive Directors.

The term of office of both Mr. WR Li and Ms. Liang as independent non-executive Directors is from 25 August 2014 and is due to expire at the forthcoming annual general meeting of the Company whereby each of Mr. WR Li and Ms. Liang will be eligible for re-election. Mr. WR Li is currently the principal partner of Zhejiang Dagong & Partners and the first-grade solicitor. Ms. Liang worked for Shaoxing Lizhu Iron Mining Company, Shaoxing Property Development Company and Shaoxing Tianying Tax Agent Company.

Now Ms. Liang has retired. In addition, after careful and thorough consideration of the requirements under the government policy and the relevant policy interpretation, Mr. Li Yon gsheng, an independent supervisor of the company, has also resigned as independent supervisor of the company with effect from 25 August 2014. The Board proposed to appoint Mr. Xiao Jianmu as the independent supervisor of the supervisory committee.

The term of office of Mr. Xiao as an independent supervisor of the company is from 25 August 2014 and is due to expire at forthcoming annual general meeting of the Company whereby Mr. Xiao will be eligible for re-election. Mr. Xiao is now the vice director of Zhejiang Zhongtian Accountant Firm. An appointment letter will be entered into between Mr. Xiao and the company and the term of office of Mr. Xiao as an independent supervisor of the company came into effect from 25 August 2014 and is due to expire at forthcoming annual general meeting of the company whereby Mr. Xiao will be eligible for re-election.

In addition, the Board further announced that with effect from 25 August 2014, the composition of the Board committees are: Audit Committee: Mr. Chan Yin Ming, Dennis as Chairman; Mr. Fung Ching, Simon and Mr. Li Wangrong as Members; Remuneration Committee: Mr. Chan Yin Ming, Dennis as Chairman; Mr. Pang Baogen and Mr. Li Wangrong as members; Nomination Committee: Mr. Li Wangrong as Chairman; Mr. Gao Jiming and Ms. Liang Jing as members.