A set of qualification standards has been imposed by the Company for potential suppliers in order to manage suppliers under the principle of centralised selection, focalised entry permission and regulated use. By using the procurement business information system, the Company conducts online centralised control and management on procurement dealings and suppliers’ database information. Suppliers’ services were tracked throughout the procurement process. Suppliers are monitored and appraised so as to enable grading and management by category and ranking.
The Company is committed to maintain market order, while complies with its policies and promises to suppliers, and advocates the establishment of a business environment with fair competition, equality and mutual benefits. Apart from putting its advantages in terms of procurement scale and professionalism into play, the Company has enhanced the risk control on the procurement process, vigorously prevented acts in violation of laws and regulations, such as black box operation and commercial bribery, as well as effectively fostered capital saving and cost control.
Adhering to the “people-oriented, safety-first, law-abiding, foundation-consolidating, innovation-driven, winning-in-quality” policy and leveraging its quality control system, the Company promoted QC group activities, strengthened laboratory testing management, and initiated the “Quality Month” event to further cultivate a quality culture, enhance the quality awareness of all employees, and continuously improve the Company’s quality management standards. In 2019, the quality check passing rates of the Company’s urea and methanol products were 100%, while the rates for such products graded as superior were 99.89% and 100%, respectively. There were no material litigation and complaint in relation to product and service quality.
Anti-corruption
Prevention and control of corruption is a major component of the Company’s risk management. In rigorous compliance with, among others, the Criminal Law, Anti-Money Laundry Law of the PRC and Rules on Integrity of Executives of State-Owned Enterprises, the Company issued the Disciplinary Action Regulations for Employees’ Breaches and Administrative Measures for Accountability Inquiry of Illegal Operations and Investments (Trial), required employees to act in strict conformity to the laws and requirements and ethical codes in relation to prevention of bribery, extortion, fraud and money laundering. The Company has in place a Supervisory Committee, which is responsible for overseeing the discharge of duties by Directors, president and other senior management members. A group of discipline inspectors is responsible for scrutiny of disciplinary actions and accountability works, oversight of the discipline of the Party members and leading cadres, and investigation of and dealing with cases in violation of discipline and rules, and thus, a comprehensive risk control system that promotes integrity is formed.
The Company conducts coordination for anti-corruption risk control and day-to-day production and operation, with regular focus on key projects and processes for routine monitoring in order to achieve prevention and invigilation of such incidents.