Recently, Shenma Shares has streamlined its governance and operational processes, institutionalized the identification and reporting of various risks, and further strengthened its risk management framework. By implementing comprehensive, standardized, and closed-loop control measures, the company has reinforced its risk‑prevention network across all business functions, thereby effectively enhancing its resilience to risks and elevating its level of modern corporate governance.

In its risk management efforts, Shenma Co., Ltd. adheres to the principles of comprehensive coverage and zero‑gap oversight, breaking down managerial silos across departments and business units to ensure full‑scope risk identification. This time, the risk management system has been fully integrated into core business areas—including operational governance, strategic investment, capital financing, safety and environmental protection, materials procurement, product sales, human resources, intellectual property protection, online public opinion monitoring, and petition‑related stability—establishing a holistic risk‑assessment framework that extends vertically to every level and horizontally across all functions. Each grassroots unit and functional department closely aligns with the realities of their respective roles, vigilantly tracking even the smallest emerging risks and sudden potential hazards throughout the entire production and operations process. By conducting precise analyses of the potential impacts of these risks, the company is shifting risk management from traditional post‑event emergency response to a proactive approach of early warning and source‑level prevention, thereby substantially enhancing its capacity for front‑end risk control.

To ensure that risk identification and assessment are accurate, thorough, standardized, and well‑organized, Shenma Shares rigorously implements the Group’s risk‑control requirements, establishing a unified, standardized risk‑reporting template and standardizing the entire risk‑management process. By precisely defining risk categories, meticulously detailing specific risk manifestations, scientifically evaluating the magnitude of potential impacts, and quantitatively estimating possible operational losses, the company formulates targeted response plans, clarifies information‑source channels, and achieves quantitative risk evaluation, tiered classification and record‑keeping, as well as closed‑loop handling for each issue—thereby enabling precise identification and timely mitigation of various production and operational risks.

Meanwhile, Shenma Co., Ltd. has strengthened hierarchical management accountability and implemented a risk-management mechanism that assigns specific personnel to specific roles and responsibilities. Each business unit has designated key staff as risk‑management liaisons, who are fully dedicated to daily tasks such as collecting and consolidating risk information, preparing and submitting reports, tracking corrective actions, and coordinating cross‑departmental collaboration, thereby ensuring that the primary responsibility for risk management is firmly assigned and rigorously enforced at every level. Leveraging a dedicated working framework, the company has established an end‑to‑end closed-loop process: “liaison reporting—risk‑control department aggregation and analysis—hierarchical approval by responsible leaders—time‑bound rectification by accountable units—final review, acceptance, and case closure.” For routine risks, the company adheres to immediate identification and prompt remediation, striving for dynamic zero‑tolerance; for significant risks, it employs a “listed supervision” approach, conducts regular progress reviews, and maintains continuous oversight, while maintaining comprehensive control records to ensure that all risks are traceable, controls are verifiable, and outcomes are assessable.

At present, the nylon industry is grappling with multiple pressures, including overcapacity, volatile raw-material prices, and weak downstream demand. As a result, uncertainty in the sector continues to mount, posing significant challenges to corporate operations and production. A normalized, systematic, enterprise-wide risk-management framework can help companies accurately anticipate, effectively prevent, and mitigate risks arising from the international environment, industry transformations, and operational dynamics, thereby minimizing the impact of external uncertainties on business performance and establishing a robust safeguard for stable operations.

Going forward, Shenma Shares will adhere to the risk‑control philosophy of “early identification, early warning, and early response,” continuously diversify its risk‑management tools, strengthen its risk‑control team, and enhance the risk‑prevention capabilities of all employees. By doing so, the company will steadily fortify the foundations for safe and stable growth, ensuring a high‑quality, sustainable, and healthy development trajectory.