Overall Situation of Internal Control
The company has established a board of directors, a supervisory board, and various specialized committees in accordance with the Company Law, Securities Law, relevant regulatory requirements, and the Articles of Association. An organizational structure has been created that is appropriate to the nature and scale of the business, with clear management functions for each department. Appropriate divisions of responsibilities and reporting relationships have been established between departments to ensure that the authorization, execution, recording, and maintenance of assets are mutually supervised by different departments or personnel.
Shareholders' Meeting
The shareholders' meeting is the highest authority of the company, managing and supervising daily operations through the board of directors, with powers in accordance with the Company Law and Securities Law. The shareholders' meeting decides on the company's development strategies, reviews changes in capital, major transactions, and elects directors and supervisors. The company has formulated the "Rules of Procedure for Shareholders' Meetings" and operates strictly according to these regulations.
Board of Directors
The board of directors is the permanent decision-making body elected by the shareholders' meeting, fully responsible for the company's operations and management, and formulates the overall policies, objectives, and annual comprehensive plans. It is the center of business decision-making and is accountable to the shareholders' meeting. The board has established four specialized committees: the Strategy Committee, Audit Committee, Compensation and Assessment Committee, and Nomination Committee. The company has developed the "Rules of Procedure for Board Meetings," "Independent Director Work System," and rules for specialized committee meetings, operating strictly according to these regulations. Directors effectively contribute their expertise in major decisions and investments, protecting the interests of the company and investors.
Supervisory Board
The supervisory board is the company's supervisory body, with shareholder representatives elected by the shareholders' meeting. Authorized by the shareholders' meeting, it safeguards shareholder rights and ensures that the interests of the company and employees are not infringed upon, supervising the legal operations of the company and the actions of directors and senior management. The supervisory board is accountable to the shareholders' meeting. The company has established the "Rules of Procedure for Supervisory Meetings" and operates strictly according to these regulations.
Management and Organizational Structure
The company implements a president system under the responsibility of the board of directors, clearly defining the responsibilities of senior management and establishing an internal accountability mechanism. Management personnel have distinct roles and responsibilities, enabling effective control over daily operations. The company has established an organizational structure that aligns with production operations and project construction, setting up 18 functional departments, including Production Operations, Budget, Project Bidding, Finance, Legal Affairs, and Audit, thereby creating a sound internal management system. The principle of separation of incompatible duties has been largely implemented, scientifically dividing responsibilities and authority among centers and departments, forming a system of checks and balances. Departments communicate information at all times to ensure effective control measures. Each of the company's holding subsidiaries and important equity investees has established a complete decision-making system, execution system, and supervisory feedback system under a primary legal governance structure, setting up internal supervisory bodies and business departments according to the principle of mutual checks and balances.