On the morning of August 21, Shenma Co., Ltd. held a compliance oversight and audit training session in its first-floor conference room, inviting a certification expert from China Inspection and Certification Group Henan Co., Ltd. to serve as the instructor.

Shenma Shares Compliance officers from the Legal & Compliance Department, Capital Operations Department, Corporate Finance Department, Human Resources Department, Safety Production Department, Marketing Management Department, Nylon New Materials Research Institute, and other relevant departments attended the training.

Training Focusing on the key aspects of building an enterprise compliance management system and conducting annual surveillance audits, this session provides a detailed explanation of critical steps—ranging from pre-audit planning and the dynamic updating of system documentation to internal audits, management reviews, preparation for audit visits, on-site surveillance audits, and the archiving of audit findings—while adhering to the national standard “Requirements and Guidelines for Compliance Management Systems.” Special emphasis is placed on the preparation guidelines and practical implementation methods for the three core compliance‑related checklists: the Compliance Obligation Identification Checklist, the Job Responsibilities Checklist, and the Risks and Opportunities Identification Checklist. Additionally, the oversight and control mechanisms across the three lines of defense—business units, the compliance management department, and the audit department—are thoroughly elucidated.

Throughout the training, participants listened attentively, took meticulous notes, and actively posed questions, drawing on their own job responsibilities, the challenges they face in day-to-day compliance work, and the key priorities for this year’s audit‑readiness efforts. In response to the diverse questions raised, the expert instructors provided thorough, step‑by‑step clarifications and precise guidance, effectively helping participants dispel misconceptions and address skill gaps, while fostering a lively and interactive exchange on site.

This training holds significant practical value for Shenma Shares in carrying out internal audits, management reviews, and preparing for the annual recertification audit—key tasks that underpin its operations. For years, Shenma Shares has regarded compliance management as a critical tool for mitigating business risks, standardizing operational processes, and safeguarding the foundation of sustainable development. In early July, in alignment with newly enacted laws and regulations since 2026, the company promptly revised five key lists—covering legal and regulatory requirements, compliance obligations, and risk identification—in ten major areas, including production safety, contract management, labor and employment, ecological and environmental protection, and intellectual property, thereby substantially enhancing its overall compliance management capabilities.

Going forward, Shenma Co., Ltd. will, in line with its annual compliance‑management objectives, strengthen cross‑departmental communication and coordinated collaboration, rigorously enforce all policies and procedures under the compliance management system, conduct regular self‑inspections and corrective actions, and continuously enhance the company’s compliance‑management capabilities and risk‑control standards, thereby safeguarding the enterprise’s sound and sustainable development.