We have established an audit committee, which currently consists of Edward Tsai, Ze Yun Mu and Yi Hong Zhang. Its functions are to:

•recommend annually to our board of directors the appointment of our independent public accountants;
•discuss and review the scope and the fees of the prospective annual audit and review the results with the independent public accountants;
•review and approve non-audit services of the independent public accountants;
•review compliance with our existing accounting and financial policies;
•review the adequacy of our financial organization; and
•review our management's procedures and policies relative to the adequacy of our internal accounting controls and compliance with U.S. federal and state laws relating to financial reporting.
Our Board of Directors has determined that we currently have two audit committee financial experts serving on our audit committee, both of whom are "independent" as defined by the Nasdaq Stock Market listing standards: Ai jun Jiang and Yi Hong Zhang.