Translator| Mia Zhou

Revisers| Martina Jelen, Nancy Wu

After the conference on fighting against corruption and fraud held by Hisense Group, all subsidiaries successively held meetings to educate members and implement anti-counterfeiting and anti-corruption work. At the operation meeting of Hisense International, held on October 15, President Alex Zhu insisted on Hisense's firm zero-tolerance attitude against fraud and corruption. All managers and employees of Hisense International are required to fully understand this. He said that these are two absolutely untouchable red lines – high voltage lines in Hisense that no one should ever cross under any circumstances whatsoever!

Alex Zhu said that regardless whether it is in China or in international markets, whether staff or managers, whether deliberately, by connivance or negligently, mistakes will never be forgotten just because time has passed on by. Whenever problems are found, Hisense International will investigate to the end. The business scale of Hisense International is close to 60 billion CNY. These achievements are due to everyone's tireless efforts day and night. How can we tolerate fraud and corruption that erode our achievements, demoralize the team, and even directly harm the vital interests and future development of all members?

According to Alex Zhu, compared with the intuitive indicators such as sales revenue, profit, inventory, and problem funds, internal control indicators are implicit and difficult to quantify. General managers generally pay less attention to internal control than to performance indicators – and this must change. "I hope everyone at Hisense International can take this opportunity to realize the seriousness of the problem, and establish a comprehensive and effective system of internal control and supervision, and make bad things into good," he said.

Mike Zhang, Chief Accountant at Hisense International, was tasked with leading the financial team that is to establish an internal control system as soon as possible, while leaders of international regions should immediately set up internal control and internal audit supervision systems in each region. First, we should establish organizational and mechanism guarantee. Clear solution guidelines must be formed within a month. 

For the fraud and corruption cases, Alex Zhu put forward requirements for all companies:

First, general managers of all companies must make their voices heard within the organization, pass down the attitude of the Hisense Group and Hisense International, let all members understand the case and the company's handling method, and make clear the attitude of resolutely fighting against corruption and fraud. Only when the leaders speak out and show the company's position and attitude, can the enterprise culture be stable and a good organizational atmosphere can be established. There must be no connivance or tolerance for corruption and fraud.

Second, when companies discover fraud and corruption cases, they should immediately report them to the HQ and deal with them resolutely and seriously. Hisense International HQ must pay high attention to such cases and take action as soon as possible, never allowing them to be taken lightly.

Third, the financial teams should take the responsibility of internal control and establish a sound internal control system, so that there are no loopholes for corruption and fraud. Financial teams must take it as a key and long-term assignment. And they must be firm, not only firm to promote the work, but also firm to keep their heart.

Alex Zhu finally said that Hisense International is a pure team. We don’t want those short-term performance and personal gains in return for fraud and corruption. We want long-term healthy development. In particular, we want to become a large company of 150 billion CNY in the future. We need very strong business operations. That is, the basic guarantee of internal control and internal audit system should be firm.