1. In the audit, the audit committee of the Growth Enterprise Market noticed that from 2008 to 20 10, there were a large number of non-operating capital transactions between the company and related parties such as Shanghai Tongyue, Feng Runxin Energy, Huiying Investment, Shanghai Zhonghe, Zonghe Science and Trade, Zhejiang Tongyue and Huang Gonggelaite, and no written contract was signed.
2. In 2008 and 2009, the company had an equipment financing lease transaction with the related party Shanghai Tongyue. Before and after the establishment of the joint-stock company, the company failed to perform the decision-making procedures of the board of directors and shareholders' (shareholders') meeting on the above matters, indicating that the corporate governance structure of the company is imperfect and the internal control is flawed.