Chapter One General Principles
Article 1 Purpose
To strengthen the internal control system of Wuxi Honghuan New Materials Technology Co., Ltd. (hereinafter referred to as "the Company"), to prevent and mitigate risks, promote the healthy development of the Company, protect the rights and interests of investors, and ensure compliance with relevant laws and regulations.
Article 2 Scope
The internal control system applies to all departments and personnel of the Company.
Article 3 Basic Principles
The internal control system should adhere to the following principles:
- Overall principle: The internal control system should be comprehensive and effective, covering all business activities.
- Risk-based principle: The internal control should focus on key business areas and high-risk sectors.
- Control effectiveness principle: The internal control system should be efficient and effective in achieving its objectives.
Chapter Two Key Control Activities
Article 14 Management Control
The Company shall establish management controls to ensure effective operation of the internal control system.
Article 15 Risk Management
The Company shall implement risk management measures to identify, assess, and respond to risks.
Chapter Three Related Transactions
Article 17 Related Party Transactions
The Company shall establish procedures for related party transactions, ensuring transparency and fairness.
Article 18 Approval Procedures
The Company shall define approval procedures for related party transactions to prevent conflicts of interest.