Governance

Quotation

Corporate Governance

Wankai New Material Technology Co., Ltd. consistently integrates social responsibility into corporate governance and incorporates it into the company's development strategy.

Organizational Structure

The company's basic organizational structure consists of a multi-level governance structure composed of the shareholders' meeting, the board of directors, the supervisory board, and the executive management in accordance with national laws and regulations and the company's articles of association. The board of directors has specialized committees such as the strategic committee, audit committee, remuneration and assessment committee, and nomination committee, as well as the board office. The company has functional departments including the procurement center, domestic trade center, foreign trade center, production center, quality center, research institute, logistics center, administration center, finance center, and internal audit department.

Stakeholders
Information Disclosure and Transparency
In accordance with the Securities Law and related regulations, as well as the Articles of Association, the company has established an Information Disclosure Management System to ensure that disclosures are truthful, accurate, complete, and timely, fulfilling its disclosure obligations effectively. There are no significant differences between the company’s actual governance status and the requirements of laws, administrative regulations, and the China Securities Regulatory Commission.
Independence of the Company from Controlling Shareholders
The company operates in compliance with the Company Law, Securities Law, and related regulations and has established a sound corporate governance structure. It operates independently from controlling shareholders in terms of assets, personnel, finance, institutions, and business operations.

1. Asset Independence
The company owns or has usage rights for the main assets related to its current business and production operations, such as land, buildings, machinery, and intellectual property. There is no encroachment by the controlling shareholders or their controlled entities.
2. Personnel Independence
The election and appointment procedures for the company's directors, supervisors, and senior management comply with the Company Law and the Articles of Association. Senior management works for the company and receives remuneration solely from it, without holding any other positions in the controlling shareholders' entities. The company independently manages labor, personnel, and compensation, hiring necessary staff and legally signing labor contracts with employees.
3. Financial Independence
The company has an independent finance department, finance director, and dedicated financial staff. It independently conducts financial operations and decision-making and has a standardized accounting and financial management system in accordance with the Accounting Law and relevant accounting standards. There are no instances of monetary funds or assets being occupied by shareholders or related parties, nor any shared bank accounts or mixed tax payments with controlling shareholders.
4. Institutional Independence
The company has established a general meeting of shareholders as the supreme authority, a Board of Directors as the decision-making body, and a Supervisory Board as the supervisory body, along with corresponding offices and operational departments. These departments work collaboratively, forming an independent operational entity free from interference by controlling shareholders. There is no overlap in institution
Innovation in Management Mechanism
According to Zhink Group's strategic deployment, we will continue to implement the rotating general manager system, comprehensively enhancing senior management's holistic thinking, overall organizational coordination, comprehensive management capabilities, and sense of responsibility. This ensures that the management team operates the company with integrity, professionalism, and transparency. The management team should make decisions based on clear goals and values, under good supervision and constraints.
Strictly Ensuring Production Safety
In 2023, the company fully achieved its safety production responsibility targets, with all indicators under control, and received an excellent rating in the annual safety production responsibility target assessment. By optimizing operating procedures, conducting education and training, enhancing safety inspections, creating exemplary work teams, and strengthening occupational health, the completion rates for Level 3 safety education, certification for special operations personnel, and rectification of key hazards all reached 100%.
Management of Insider Information
In 2023, the Board of Directors of Wankai New Materials Co., Ltd. strictly adhered to the requirements of the China Securities Regulatory Commission and the Shenzhen Stock Exchange's business rules, promptly registering and submitting records of insiders. The records were maintained to be true, accurate, and complete, and relevant laws and regulations concerning insiders were communicated to all parties. Six insider records were registered and submitted for the following events:
1.   March 29, 2023: Annual report and profit distribution plan for 2022.
2.   March 29, 2023: Issuance of convertible corporate bonds.
3.   April 28, 2023: First quarter report for 2023.
4.   August 29, 2023: Semi-annual report for 2023.
5.   October 24, 2023: Third quarter report for 2023.
6.   October 31, 2023: Company share repurchase.
Investor Relations Management
In 2023, the Office of the Board of Directors of Wankai New Materials Co., Ltd. interacted with investors 141 times through the Shenzhen Stock Exchange Interactive Platform. Other investor relations activities included:
1.   April 13, 2023: Online performance briefing, attended by the chairman, CFO, and independent directors.
2.   April 12 and May 23, 2023: On-site surveys conducted by Huatai Securities, Guoyuan Securities, and other brokerages, with the chairman and senior management in attendance.
3.   November 6, 2023: Roadshow event attended by the Investor Relations Director.
4.   November 16, 2023: Roadshow event attended by the Investor Relations Director and CFO.