The goal of corporate governance is to safeguard shareholders' rights and interests, improve information transparency, and comply with laws and regulations. The company has established an effective management mechanism to enhance efficiency, while strengthening the functions of the BOD and internal auditing systems, establishing rewards and punishments system consistent with responsibilities. We expect to achieve the ultimate goal - Corporate Sustainable Development, through sound corporate governance and implementation of integrity policy.
a. Improve transparency and reveal material information in real time.
b. Establish mechanisms for benign interaction and power checks and balances between the BOD and the management.
c. Maintain the proportion of independent directors.
d. Form an audit committee to review major proposals and maintain the independence and fairness of certified accountants.
e. Form a remuneration committee to review and improve the remuneration system for directors and managers.
f. Make a specific and clear dividend policy.
g. In Shareholders’ meeting, vote on a case-by-case basis and promote the e-Voting to fully implement the exercise of shareholder rights.
h. Make corporate governance rules, uphold the principle of integrity and implement internal audit mechanisms.
In 2020 Shareholders' meeting, the company has re-elected directors and formed a new BOD, a new audit committee and a new remuneration committee. All new directors and committees will perform their duties to implement corporate governance.
The BOD meeting of 2020 November passed to appoint Mr. Dai, Zhihao, a deputy manager of the accounting dept. to concurrently sever as the chief corporate governance officer (CCGO). The responsibilities of the CCGO include providing information requested by directors, handling related matters of the BOD and Shareholders' meeting, handling company registration and changes, preparing minutes of the BOD and Shareholders' meeting, to facilities the smooth operation of corporate governance.
The audit office is directly under the BOD. The appointment and removal of the audit supervisor is approved by the BOD. The purpose of internal audit is to check and evaluate the reliability, efficiency and effectiveness of the company's operating records and internal control, and provide suggestions for improvement to the BOD and audit committee on a regular basis, in order to improve the internal control system and increase operating efficiency.
The global business environment is affected by various factors such as the technological competition between the United States and China, the outbreak of the war between Ukraine, Russia, and Israel and Palestine, fierce geopolitical competition, and frequent extreme natural disasters. Business risks have also worsened and become difficult to predict. Our risk management policies and goals are set by identifying various risk factors in advance, analyzing the probability of occurrence and the possible harm to operations, and formulating tolerance and contingency plans to reduce the impact of risks when they occur and maintain operation normally. In 2023, as all units actively respond to various difficulties and challenges, we will achieve revenue growth targets, maintain stable profits, and achieve annual operating targets.
The "Corporate Governance Issues Unit" under the Sustainability Committee is a dedicated unit responsible for the promotion and implementation of risk management. The Gorporate Governance Issues Unit will set up annual policies and goals every year, identify risk sources and major impact issues, assess the impact of risk issues on operations, assist various departments to formulate response plans and communicate across departments, regularly review risk assessment and execution results, enhance the risk concept of all employees, and submit annual execution results to the board of directors
Environmental ProtectionRelated Issues
Carbon Footprint Verification and carbon reduction planning、Update on regional environmental protection regulations、Flood (water shortage)
Social ProsperityRelated Issues
Employee care、Operational safety accident、Earthquake/Fire
Corporate GovernanceRelated Issues
Cyber security issues、Integrity management、 Market fluctuations、Update of law and regulations
Serious infectious disease
The above risk issues have been reported to the BOD on November 13, 2023 meeting. Each unit and factory of the company will formulate a response plan based on risk identification issues. The Admin. Division and the Factory Control unit and the Auditing Department will assume supervision responsibilities and assist in reviewing and improving the response plan to improve risk response capabilities and reduce company operating costs.
Relevant risk management procedures and results will be disclosed to the public through the annual report of annual shareholders' meeting and the company's website for stakeholders to understand the company's emphasis on risk management and its persistence in the concept of sustainable management.
According to the company's procedure of preventing insider trading, we shall educate directors and managers about the procedures and related laws and regulations at least once a year. Current directors and managers have be provided with relevant regulations and promotional materials for insider trading and explained relevant content、regulation details、cases analysis after BOD meeting on May 9, August 8, and November 13, 2023, meeting time was two hours.