In the value chain of our business, corporate governance links all parts of the business. Effective and well-targeted policies determine the operational and risk management capabilities, and whether the business can sustain in the long run. Therefore, we emphasize governance performance and improve it by regular monitoring, supervision and policy adjustments. At the same time, we ensure the full implementation of corporate governance by raising the awareness of governance through training and performance indicators.

Since the reform of the internal system implemented earlier, we have further strengthened the management and integration to ensure the consistency of internal information within the company. In addition, we have improved external communication and management and provide a solid foundation for the long-term development of the company by maintaining the stability of the value chain concurrently.

Policies and measures

Clear policies and effectively executed measures are the basis of effective governance of a corporation. Therefore, clear and practical policies and codes are established based on the needs of different parts of the business to ensure proper operation.

Upstream – Supplier management/Product development management
Our stance:
  • We support original design and value intellectual property;
  • We are responsible for supervising suppliers so as to ensure they are in compliance with laws and regulations in terms of environment, society and governance, and fulfill corporate social responsibility with us;
  • We are responsible for ensuring employees of the supply chain to receive reasonable treatment and protection;
  • We try our best to incorporate environmental protection elements into design and procurement consideration and provide more environmentally-friendly products for the consumers.

Relevant policies for upstream business:

The upstream business mainly covers product development, product design, raw material selection and supplier management. Product R&D and design are crucial to the material selection, craftsmanship of production, follow-up process, marketing and logistics. Therefore, we establish upstream-related policies with extra care in order to start managing from the beginning of the value chain and reduce the operational risks in mid and downstream businesses as much as possible.

Midstream – Production and Operations Management/Staff Management
Our stance:

Production and operation management
  • We are responsible for ensuring the production process fully complies with the requirements of national laws and regulations.
  • As a responsible corporation, we need to ensure the governance quality of the Group. We also need to make sure that different units are operating in a way that follows each other’s guidelines. Apart from meeting the legal requirement, it is also important to be conformed to social norms.
  • We have the responsibility to ensure our governance structure is open and transparent. It is important to guarantee that all of our stakeholders can obtain relevant information through appropriate means.

Staff management
  • We abide by the laws and regulations in order to prevent any form of exploitation.
  • We employ our staff by talents and we respect our staff’s personal choices, regardless of gender, age, religion, nationality, skin color, race, sexual orientation, marital status and other personal stand.
  • We are responsible to provide reasonable treatment and protection for our staff to allow them a reasonable quality of life at where they live.
  • We are responsible for providing a safe working environment for ourstaff.
  • We are responsible for providing a comprehensive training program for our staff and to allow them apply their skills in appropriate roles.
  • We respect our staff’s family roles and we will do our best to arrange following their needs.
  • We are committed to maintaining high level of corporate governance. We expect our staff can hold the highest ethical standards, be responsible for their languages and attitudes at work, comply with business standards and handle the business in compliance with relevant rules and regulations.

Relevant policies for midstream business:

The midstream business mainly covers manufacturing operation, staff management, product quality and health and safety. These are all important parts of our supply chain. In order to offer high-quality products to our consumers, we have formulated a comprehensive product quality management system, allowing production line to remain stable and reduce potential risks. Furthermore, we value our staff and we hope our staff can showcase their skills and develop their potentials in their roles; as well as grow and strive for excellence with us.

Downstream – Production and operation management/ staff management
Our stance:
  • We have the responsibility to ensure that the production process is of full compliance with the requirements of the law and regulations in China;
  • As a responsible company, we need to ensure that the quality of governance complies with the requirements of the law and must be fit into the social norms.

Downstream business-related policies:

Our downstream business mainly covers product sales and customer relationship management, etc. Effective management policies allow us to build a mutually trusting relationship between consumers to build a better corporate image. We believe that the only way to continue improving and creating better products is to convince consumers so that we will build their confidence in our product quality and that they will be willing to provide feedback to us.