Compliance

COMPLIANCE

COMPLIANCE
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Compliance construction is an important element for the long-term survival and development of enterprises. Based on the legal compliance requirements of the Hong Kong Futures Commission (SFC) and the Hong Kong Stock Exchange (HKEX), the Group strictly adheres to the basic principles of "honesty and trustworthiness, standardized operation, and stable operation", and constructs a top-down comprehensive compliance management system to safeguard the sustainable development of the Group.

MULTI-DISCIPLINE COMPLIANCE BUILDING

Compliance construction is an important element for the long-term survival and development of enterprises. Based on the legal compliance requirements of the Hong Kong Futures Commission (SFC) and the Hong Kong Stock Exchange (HKEX), the Group strictly adheres to the basic principles of "honesty and trustworthiness, standardized operation, and stable operation", and constructs a top-down comprehensive compliance management system to safeguard the sustainable development of the Group.

MULTI-DISCIPLINE COMPLIANCE BUILDING

| Operation Compliance

Operation Compliance

We adhere to the work policy of "prevention-oriented and comprehensive management with safety first", formulate work safety policies, clarify work safety responsibilities, establish work safety organizations, develop work safety systems, and carry out work safety education and training, etc., to form a complete management system of work safety compliance, to provide solid guarantees for the sustainable development of the Group.

Operation Compliance

We adhere to the work policy of "prevention-oriented and comprehensive management with safety first", formulate work safety policies, clarify work safety responsibilities, establish work safety organizations, develop work safety systems, and carry out work safety education and training, etc., to form a complete management system of work safety compliance, to provide solid guarantees for the sustainable development of the Group.

Operation risks control

Adhere to the bottom-line thinking and apply scientific methods to focus on preventing and mitigating operational risks. Establish risk monitoring, early warning, and disposal mechanisms to minimize operational risks. Strengthen internal control norms, and the board of directors is responsible for formulating and effectively implementing internal control systems.

Operation risks control

Adhere to the bottom-line thinking and apply scientific methods to focus on preventing and mitigating operational risks. Establish risk monitoring, early warning, and disposal mechanisms to minimize operational risks. Strengthen internal control norms, and the board of directors is responsible for formulating and effectively implementing internal control systems.

Financial and tax compliance

We strictly implement the operation and approval process of financial matters through the integrated business-finance system, optimize the financial internal control system to prevent financial risks, strictly abide by tax laws and policies, make tax credits according to the law, pay various taxes and fees timely and accurately, and avoid tax evasion and tax fraud.

Financial and tax compliance

We strictly implement the operation and approval process of financial matters through the integrated business-finance system, optimize the financial internal control system to prevent financial risks, strictly abide by tax laws and policies, make tax credits according to the law, pay various taxes and fees timely and accurately, and avoid tax evasion and tax fraud.

Labor compliance

We strictly abide the "Labor Law of the People's Republic of China", the "Labor Contract Law of the People's Republic of China" and other relevant national and regional laws and regulations, labor contracts shall be signed on the premise of mutual consent between both parties. Forced labor or the employment of untrained employees in hazardous work is strictly prohibited.

Labor compliance

We strictly abide the "Labor Law of the People's Republic of China", the "Labor Contract Law of the People's Republic of China" and other relevant national and regional laws and regulations, labor contracts shall be signed on the premise of mutual consent between both parties. Forced labor or the employment of untrained employees in hazardous work is strictly prohibited.

| Integrity Compliance

| Integrity Compliance

Anti fraud and Anti-corruption Compliance

1. We are committed to maintaining a high level of business integrity, honesty, and transparency in all business transactions. Any form of fraud or bribery is strictly prohibited, and we are dedicated to preventing, deterring, detecting, and investigating all forms of such activities.
2. We adhere to the Anti-Fraud and Anti-Bribery Policy, which prohibits improper payments, kickbacks, and other forms of bribery. The policy also prohibits the payment of facilitation payments, the offering or receiving of any gifts, gratuities, or entertainment deemed to unfairly influence business relationships, and the showing of undue favoritism in the procurement of goods and services. We have established a whistleblowing procedure to encourage both internal and external individuals to report any instances of fraud or bribery.

Whistleblowing Policy

We encourage employees, customers, suppliers, and other stakeholders who have concerns about potential misconduct or fraud within the Group to proactively report or lodge complaints. The Audit Committee is fully responsible for overseeing the implementation and monitoring of the whistleblowing policy.

Anti fraud and Anti-corruption Compliance

1. We are committed to maintaining a high level of business integrity, honesty, and transparency in all business transactions. Any form of fraud or bribery is strictly prohibited, and we are dedicated to preventing, deterring, detecting, and investigating all forms of such activities.
2. We adhere to the Anti-Fraud and Anti-Bribery Policy, which prohibits improper payments, kickbacks, and other forms of bribery. The policy also prohibits the payment of facilitation payments, the offering or receiving of any gifts, gratuities, or entertainment deemed to unfairly influence business relationships, and the showing of undue favoritism in the procurement of goods and services. We have established a whistleblowing procedure to encourage both internal and external individuals to report any instances of fraud or bribery.

Whistleblowing Policy

We encourage employees, customers, suppliers, and other stakeholders who have concerns about potential misconduct or fraud within the Group to proactively report or lodge complaints. The Audit Committee is fully responsible for overseeing the implementation and monitoring of the whistleblowing policy.

| Compliance for Key Areas

| Compliance for Key Areas

Product Quality Compliance

We strictly comply with the applicable laws and regulations related to quality management, rigorously implements job quality norms and quality responsibilities, and continuously improves the products and services management and development plans . Throughout the production, operation, and sales processes, we maintain rigorous quality control at every stage to ensure the provision of high-quality products and services.

Import Compliance

We strictly abide the relevant provisions of the “Measures of the People's Republic of China for the Administration of Import and Export Food Safety” and procure goods that meet the national standards and relevant inspection and quarantine requirements. We strictly follow the requirements of government agencies such as the Ministry of Finance, the General Administration of Customs, and the National Administration of Taxation to make truthful declarations at the import stage, as well as pay import duties, import VAT, etc.

IP Compliance

We respects and protects intellectual property rights, and currently conducts supply chain management business under the core brand "SHUANGHUA" trademark, and food supply business under the core brand "LONGHUAZHEN". We will take all possible actions against any acts of counterfeiting of our trademarks and products.

Product Quality Compliance

We strictly comply with the applicable laws and regulations related to quality management, rigorously implements job quality norms and quality responsibilities, and continuously improves the products and services management and development plans . Throughout the production, operation, and sales processes, we maintain rigorous quality control at every stage to ensure the provision of high-quality products and services.

Import Compliance

We strictly abide the relevant provisions of the “Measures of the People's Republic of China for the Administration of Import and Export Food Safety” and procure goods that meet the national standards and relevant inspection and quarantine requirements. We strictly follow the requirements of government agencies such as the Ministry of Finance, the General Administration of Customs, and the National Administration of Taxation to make truthful declarations at the import stage, as well as pay import duties, import VAT, etc.

IP Compliance

We respects and protects intellectual property rights, and currently conducts supply chain management business under the core brand "SHUANGHUA" trademark, and food supply business under the core brand "LONGHUAZHEN". We will take all possible actions against any acts of counterfeiting of our trademarks and products.