Compliance

Corporate governance

The company adheres to the philosophy of standardized and efficient corporate governance, continuously improves its governance system and operational mechanisms, promotes the diversity and professionalization of the board of directors, reinforces integrity and compliance development, and enhances corporate governance effectiveness.

Board effectiveness: The company regularly conducts board effectiveness evaluations to ensure orderly and efficient board operations.

Board diversity: The company comprehensively considers gender, age, professional expertise, and industry experience when selecting directors. Current directors possess diverse professional backgrounds in finance, law, industry, and other fields, effectively supporting the company's strategic decision-making, risk control, and compliance governance. Currently, female directors account for 14.3% and independent directors account for over one-third of the board.

Risk and compliance management

The company continuously refines its risk management and compliance management systems, improves mechanisms for risk identification, assessment, response, and supervision and improvement, reinforces the effective operation of compliance management, and continuously raises all employees' awareness of risk prevention and compliance, effectively addressing various risk challenges arising from changes in the operating environment. The company strictly complies with domestic and overseas tax laws and regulations, fulfilling its tax obligations in accordance with the law. Since 2020, Weichai Power has continuously been rated Grade A in the tax credit rating by Chinese tax authorities.

Business ethics

The company always adheres to the philosophy of business integrity, continuously improves its business ethics management system, conducts regular special audits on business ethics, promotes the integrity and honesty of employees and partners, broadens whistleblowing channels, and drives the standardization of corporate governance and continuous improvement in business ethics standards.

System development: As the highest responsible body, the ESG Committee of the Board of Directors is responsible for assigned supervision and policy implementation. Continuously improving internal supervision mechanisms and leveraging smart supervision IT platforms to enhance supervision efficiency.

Special audits: The company has established and implemented a company-wide business ethics and compliance audit mechanism, conducting business ethics audits across all main businesses and key risk areas every three years.

Stakeholder management: The company signs the Integrity and Honesty Co-building Agreement with all suppliers, enters into the Commitment to Integrity and Self-Discipline with personnel in key positions, and adopts a zero-tolerance policy toward violations of business ethics.

Culture building: The company conducts business ethics training covering all employees and suppliers to comprehensively enhance the business ethics awareness and compliance competence of employees and partners.

Supervision and whistleblowing: The company establishes and continuously improves whistleblowing and supervision channels, strictly implements information confidentiality and whistleblower protection mechanisms, and ensures standardized management throughout the entire process.