China National Heavy Duty Truck: Control Risk, Ensure Stability and Realize Sustainable Development of the Company

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For companies, preventing risks is an eternal theme. This is particularly important for a company that has been shaken up and revived.

After the test of the international financial crisis, as the leader in the heavy truck industry, China National Heavy Duty Truck ranked among the top three global heavy truck companies in the scale of production and sales of 125,000 heavy-duty vehicles last year. As the only state-owned large-scale automobile company listed on the main board of Hong Kong in the manufacturing industry, China National Heavy Duty Truck Group Co., Ltd. simultaneously carried out risk prevention work in the process of transferring the structure and adjusting the structure to achieve corporate science and sustainable development.

Since the reform and restructuring of Sinotruk, the Party Committee Secretary and Chairman Ma Chunji has emphasized that the more rapid the development of the company, the greater the importance attached to risk prevention. This is a major issue that concerns whether the company can continue its healthy development and whether it will be able to maintain long-term stability. China National Heavy Duty Truck Co., Ltd. must strengthen the construction of a risk prevention responsibility system, and must provide efficiency, effectiveness, and quality to the process management.

Based on this understanding, China National Heavy Duty Truck Co., Ltd. focuses on the risk control in the process of transfer and structural adjustment and continuously improves the risk prevention and control capabilities of the company. They set up a comprehensive risk management leading group with the party committee secretary, chairman as the leader, general manager as the deputy leader, and a comprehensive risk management working group led by the general counsel. For key areas such as strategy, investment, finance, sales, and quality, Sinotruck conducts modular management and designs dedicated risk management processes in each area.

According to the company's corporate governance requirements, the risk points of 13 key business processes such as investment management, capital management, procurement process, fixed asset management, construction in progress projects, loan management, and sales process management of Sinotruk for all secondary units To conduct inspections and regulate the important steps, links, and control points in the business process to form a “closed loop” featuring the characteristics of China National Heavy Duty Truck with high management level, wide business scope, large coordination, high work efficiency, and obvious management effect. Risk management model.

In order to prevent and control risks in the international market, Sinotruk attaches great importance to the protection of intellectual property rights in the international market. The “HOWO” and “SINOTRUK” trademarks have been registered in 78 countries around the world; they fully understand the market access policies of exporting countries and ensure that companies are international The market's legal and compliance management; standardized the brand for exporting to the international market, stipulated that the foreign market unifiedly use the registered trademark, and improved the service level of overseas service personnel. Last year, China National Heavy Duty Trucks took the lead in the industry to achieve a change in the sales pattern of “going out of sales personnel and selling companies abroad”. They further improved the overseas security risk prevention and emergency handling mechanism, established a security risk assessment system, and implemented a foreign security responsibility system.

In respect of the prevention and control of domestic market risks, CNHTC has been steadfast in seizing the source of procurement, and has focused on the key points of procurement of components, raw materials, and equipment, and has standardized process control procedures such as bidding, quality claims, contract performance, and payment processes. The company strictly controlled risks around the sales process, tested the system, processes, and refunds for key points of the sales system, introduced the sales “over-the-line” supervision method, and realized the supervision of the whole process of each vehicle to ensure that all major risk points were completely affected. control.

In the implementation of mergers and reorganization projects, Sinotruk attaches great importance to the impact of risk prevention on the success of mergers and acquisitions. Legal and financial personnel conduct comprehensive and in-depth due diligence on mergers and acquisitions, and issue legal opinions and due diligence reports. In the past three years, China National Heavy Duty Truck Law Review Department issued more than 100 legal opinions, which provided the legal basis for the board of directors to make scientific decisions. Prior to the decision on the "three major" issue, there was no legal opinion for legal personnel to make decisions, no investigation report did not sign the approval of the general legal advisor, and one vote rejection of the legal personnel of the risk-prone risk project had become the working practice of the decision-making of China National Heavy Duty Truck Board. .

View related topics: China heavy truck launches new heavy truck HOWO-A7


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