Contemporary Amperex Technology Co., Limited (CATL) maintains a governance framework aligned with the Corporate Governance Code under the Hong Kong Listing Rules. The Board oversees strategic decisions, compliance, and internal controls, supported by dedicated committees. The roles of chairman and general manager are held by the same individual, representing a deviation from Code provision C.2.1; however, the Board believes this arrangement benefits the current corporate structure.
The Board of Directors comprises nine Directors, including six executive Directors, three independent non-executive Directors, and one employee representative Director. It has established a Strategy Committee (for major strategic development), an Audit Committee (for financial reporting and risk oversight), a Nomination Committee (for Board composition and diversity), and a Remuneration and Appraisal Committee (for evaluating performance and remuneration policies). The governance framework is periodically reviewed, with the Board concluding that the existing structure remains effective.
CATL employs a three-line defense risk management approach. Business units form the first line by identifying and managing risks directly, the risk management department constitutes the second line with oversight responsibilities, and the internal audit department provides the third line with independent assessments. The Board conducts at least one comprehensive internal control review annually, informed by management reports and the Audit Committee’s findings. Key risk areas include strategic, market, operational, reputation, environmental, and social dimensions, monitored through a digital system that tracks and visualizes risk indicators. This system is continuously refined to enhance identification and measurement, supporting the Company’s objective of managing risk exposure within acceptable parameters.
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