To standardize internal business operations within the nylon segment and promptly settle all intercompany receivables and payables, Shenma Shares recently issued the “Internal Debt Collection Management Measures for the Nylon Segment” (hereinafter referred to as the “Measures”), aiming to accelerate the circulation of funds within the industrial chain and enhance the company’s production and operational performance.

The Measures stipulate that, among all member units within the nylon sector, debts and receivables arising from transactions such as the purchase and sale of goods, the provision of services, and fund transfers shall be managed in an orderly manner throughout the entire process—ranging from reconciliation and invoicing to account posting and fund disbursement—in accordance with the principles of “the debtor settles the debt, the responsible party assumes accountability,” “compliant collection with individual responsibility,” and “timely reconciliation and scheduled settlement.”

The Measures stipulate that, in routine debt‑collection activities, the debtor entity assumes primary responsibility for repayment, the creditor entity is tasked with supervising and urging collection, and the Operations and Finance Department of Shenma Co., Ltd. undertakes overall coordination and performance‑assessment duties. Within the nylon business segment, creditor entities post information on overdue receivables via a communication platform, while debtor entities promptly arrange for payment. Meanwhile, the Operations and Finance Department of Shenma Co., Ltd. convenes ad hoc internal debt‑collection meetings at irregular intervals to report on progress and deliberate on key issues. Priority in debt repayment is given to payments made through deposits into the Settlement Center’s account, thereby fully leveraging the internal funds pool and enhancing capital‑utilization efficiency.

The Measures stipulate that Shenma Shares shall conduct a special monthly assessment of inter‑unit debt‑clearance efforts within the nylon business segment. Should a debtor unit fail to meet the required repayment ratio for the month, the company will impose performance‑based penalties on the unit’s principal responsible officer and its chief financial officer.

According to the head of the Operations and Finance Department at Shenma Co., Ltd., strengthening communication and coordination among the various units within the nylon business segment and effectively managing internal debt and accounts‑receivable collection are of great significance for many aspects of corporate management. From a managerial perspective, this approach helps eliminate artificial inflation in reported profits and enables an accurate assessment of the production and operational performance of each unit within the segment. In terms of supply‑chain collaboration, it facilitates the refinement of internal transaction rules and enhances the overall efficiency of the value chain. On the financial front, it boosts capital‑use efficiency and reduces corporate financing costs. At the same time, it effectively mitigates tax and audit risks, continuously improving the company’s financial structure and governance.

Going forward, Shenma Shares will strictly adhere to the specific provisions of the “Internal Collection Management Measures for the Nylon Business Segment,” reinforcing the principal responsibility of each unit within the segment for production, operations, and financial management. The company will continue to strengthen all aspects of financial management, including account reconciliation, receivables collection, recognition of operating results, and profitability analysis, leveraging synergies across the industrial chain to enhance operational efficiency and drive the enterprise’s sound and sustainable development.