Huafeng Test & Control strengthens governance on funds and investments

Beijing Huafeng Test & Control Technology has issued a series of management policies to bolster internal controls. The focus is on preventing misappropriation of funds by controlling shareholders, regulating external investments, and standardizing financial operations.

The company's new fund management system aims to prevent unauthorized fund usage by related parties through stringent approval processes for transactions, including purchasing, sales, and service provision. This ensures fair pricing and timely settlement to prevent abnormal fund occupation.

Under the updated external guarantee management system, all guarantees must undergo board or shareholder approval. Specific thresholds are set for aggregate guarantee amounts relative to net assets and for guarantees to shareholders or actual controllers.

The investment decision-making management policy outlines a tiered approval structure for all external investments, including equity, debt, and real estate, based on asset value and market capitalization thresholds. This ensures all investment activities align with strategic goals and are subject to rigorous risk assessment and disclosure requirements.

Enhanced financial management and internal audit systems establish clear responsibilities for financial personnel, mandate regular audits of financial statements and transactions, and ensure compliance with accounting standards. These measures aim to enhance financial information quality, safeguard company assets, and promote transparent and efficient operations.