According to the Code of Ethical Conduct of Chun Yu Factory Co., Ltd., it stipulates the prevention of conflicts of interest, the avoidance of opportunities for self-interest, confidentiality, fair trade, protection and proper use of company assets, compliance with laws and regulations, and encouragement to report any illegal or violation of moral codes of conduct behavior, and formulate relevant penalties for violations. With regard to penalties, when a director or manager violates the Code of Ethical Conduct, the company shall deal with it in accordance with the disciplinary measures stipulated in the Code of Ethical Conduct, and immediately disclose the violation date, violation date, and Information such as the cause, the violation of the code, and the handling of the situation. The company should also formulate relevant complaint systems and provide remedies for those who violate the ethical code of conduct (refer to Article 9 of the Code of Ethical Conduct of Chunyu Factory Co., Ltd.). In addition, in accordance with the provisions of Article 10 of the Code of Ethical Conduct of Chunyu Factory Co., Ltd., there is an exemption procedure. The virtue of the rule of law is that it has built-in interests or values that it intends to protect, and uses well-thought-out and rigorous words to regulate or guide the behavior of corporate legal persons and natural persons. Our company respects the virtue of the rule of law and puts a lot of effort into compliance with laws and regulations. Therefore, during the reporting period, there was no incident of being punished in terms of corporate governance. The company’s definition of major violations is as follows:
1. Violation of major environmental protection, industrial safety and other social incidents.
2. The amount of fines for a single incident is more than 1 million yuan.
3. Those who cause major environmental and human accidents involving punishment.
Article 01
In order to strengthen the governance of Chun Yu Factory Co., Ltd., prevent fraud, reduce the risk of the company’s operation, and encourage employees and interested parties to report and complain about corporate fraud, these regulations are specially formulated.
Article 02
The purpose of the company’s anti-fraud work is to regulate the company’s employees at all levels to strictly abide by relevant laws, professional ethics and control systems when performing business, and to prevent behaviors that damage the interests of the company and shareholders.
Article 03
The term “fraud” as mentioned in these Measures refers to the behavior of internal and external personnel of the company to use illegal means such as deception to seek personal illegitimate interests and damage the economic interests of the company. Anyone who has any of the following circumstances is a fraudulent act:
(1) Accepting bribes or kickbacks
(2) Transferring transactions that would normally make the company profitable to others.
(3) Illegal use of company assets or embezzlement, misappropriation, or theft of company assets.
(4) Making the company conduct false transactions
(5) Deliberately concealing or misreporting transactions, causing false records, misleading statements or major omissions in information disclosure
(6) Falsifying or altering accounting records or vouchers, providing false financial reports
(7) Disclosing the company’s commercial or technical secrets.
(8) Other acts that damage the company’s economic interests or seek illegitimate economic interests
Article 04
The board of directors has the responsibility to urge the management to establish an anti-fraud culture and an internal control system to prevent fraud.
Article 05
The management level needs to establish a good internal control system, set up reporting channels to prevent and discover fraud, so as to reduce the chance of occurrence, and take appropriate and effective remedial measures for the behavior.
Article 06
If all employees discover fraud, they should report to the company’s audit office through legitimate channels.
Article 07
The company has set up complaint mailboxes, whistleblower telephones, and e-mail boxes to accept real-name whistleblowers from employees and external third parties. Anonymous whistleblowers will not be accepted and written records must be left. The Audit Office is responsible for accepting fraud cases and reporting to the general manager or above. And publicize the whistleblowing phone number and email address.
Article 08
For reports involving employees and supervisors below the manager level (including), the audit office shall report the investigation results to the general manager. If the report involves a supervisor above the manager level, the audit supervisor should report directly to the board of directors without going through the general administrative procedures.
Article 09
Investigators who accept reports and complaints or are responsible for fraud cases are not allowed to provide relevant materials and contents of reports to any department or individual without authorization.
Article 10
Whistleblowers must be protected in assisting with investigations, and the company prohibits any unlawful discrimination or retaliation, as well as hostile conduct against those involved in an investigation. Those who violate the regulations and leak the information of the whistleblower or take retaliation against the whistleblower will be punished according to the seriousness of the circumstances. If they violate the law, they will be handed over to the judiciary for handling in accordance with the law.
Article 11
The audit office should report the results of investigation and handling of fraud cases to the whistleblower after approval by the board of directors or the general manager.
Article 12
After a fraud case occurs, the company should take remedial measures in a timely manner, evaluate and improve the case of fraud, and improve the process in time to avoid the recurrence of fraud.
