Risk Control

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Under the conditions of market economy, there are always some things uncontrollable, thus there is always a risk. The managers of JuneYao Group have taken various measures and methods to eliminate or reduce the likelihood of occurrence of risk events, or control the possible loss within a certain range to avoid the unbearable losses when risk occurs.

Over the years, JuneYao Group have reallocated various elements that affect the competitiveness of enterprises and strengthened self-discipline and internal oversight mechanism of the enterprise; it added Group’s Audit Committee of the Board, improved the Group's internal control and corporate governance structure, facilitating a healthy and sustainable developments of the Group.

For any one internal audit, Group Audit Committee shall combine the audits before, during and after the matter in consideration and make it penetrate the entire process of the operation management; The Group’s internal audit has gradually extended from the financial audit to process audit, business audit and gradually penetrated into Group’s various companies, various levels and various aspects.

Group Audit Committee has vigorously carried out special audit investigation to provide a variety of decision-making basis for the Board of Directors of the Group and the demonstration of policy and economy; the Committee has also conducted a risk assessment on major business, project investment to prevent decision-making mistakes so as to avoid economic losses.

In addition, it has reflected the universal and tendentious issues in the economic activity and put forward detailed, specific and operational improvements comments and recommendations; it shall evaluate the operating results achieved after the implementation of the various decision-making of enterprises, allowing the Board of Directors of the Group to quickly understand whether the reform measures are effective, the decision-making actions are perfect and the enterprise resource are fully used so that the Board of Directors of the Group could adjust the decision-making action in a timely manner and promote enterprise to reduce waste, reduce costs and improve the economic efficiency of enterprises.

The market economy is becoming more and more perfect and the commercial risk is increasingly reflected by legal risk to a great extent. Similarly, all legal risks will eventually be reflected in the commercial risk. No any one legal risk is not accompanied by the gain and loss of corporate economic interests. In this context, the Group has paid increasing attentions on the legal work: it has built a sound legal work team and laid down a guiding ideology of focusing on the pre-event prevention and supplemented by during-event control and added by the after-event fire quenching for the legal affair work; and established a sound contract countersign system and a sound contract-related documents archiving management system. The staffs in legal affair team act as the role of the Group's escort to control the management and operational risks.

To strengthen the standardization of daily work, the Group have also launched the process management in departments at all levels. Like the body's blood flow, the process management shall transmit related information data from one person (department) to other personnel (department(s)) under certain conditions and returned to the related person (department) after having gained the results.

Different departments, different people and different suppliers within the Group carry out joint operation in accordance with the appropriate process.