In order to enhance the anti monopoly compliance practice of operators, the Anti monopoly Committee of the State Council formulated and issued the "Anti monopoly Compliance Guide for Operators" (hereinafter referred to as the "Guide") in September 2020. In 2022, the second year of the official implementation of the Guidelines, more enterprises have carried out various compliance work. Based on the annual reports of domestic listed companies disclosed so far in 2022, we have summarized the relevant work on antitrust compliance construction of listed companies.

As of April 27, 2022, a total of 16 domestic listed companies from the main board, the growth enterprise board, and the science and innovation board have mentioned relevant content of corporate antitrust compliance in their annual reports, internal control reports, and environmental, social, and corporate governance reports (ESG reports). According to the disclosure, it can be seen that domestic listed companies have basically followed the provisions of the Guide and established an antitrust framework system based on "system construction+compliance training".

Attachment: Disclosure of Antitrust Compliance of Domestic Listed Companies

Longji Co., Ltd., China Merchants Shekou, and Shanke Intelligent: Actively introduce corresponding management measures and work guidelines for antitrust compliance within the group

The Guidelines encourage qualified enterprises to establish anti monopoly compliance management departments, and develop and improve relevant compliance management measures and processes. We have noticed that more and more listed companies have formulated and introduced internal antitrust compliance management measures as a guiding basis for enterprise antitrust compliance work.

According to the 2021 Sustainable Development Report issued by Longji Co., Ltd., on the basis of complying with external laws, regulations, and norms, the company has issued or improved 16 compliance specifications and internal control manuals throughout the year, including the Antitrust Compliance Management Measures.

In China Merchants Shekou's 2021 social responsibility report, it is also mentioned that in order to improve the ability to prevent compliance risks and improve the level of compliance management, the company has participated in the formulation and implementation of a series of internal rules and regulations such as the "China Merchants Group Business Partner Compliance Management Measures", "China Merchants Group Anti monopoly Compliance Management Guidelines", and "China Merchants Shekou Business Partner Compliance Management Guidelines", "Anti monopoly Compliance Management Guidelines", To provide a strong guarantee for the company's good start and high-quality comprehensive development during the "14th Five Year Plan" period.

In addition, Shanke Intelligent stated in its 2021 ESG report that in 2021, Shanke Intelligent formulated the "Anti monopoly Compliance Management Measures of Hangzhou Shanke Intelligent Technology Co., Ltd." based on its own situation, which covers a complete set of corporate policies, procedures, and internal control mechanisms, aimed at assisting employees internally, guiding partners and trading partners (including suppliers, distributors, etc.) to comply with the obligations stipulated in the Anti monopoly Law. Shanke Intelligent incorporates antitrust into the company's compliance system, and the company and each department implement compliance subject responsibilities based on their own actual situation. The "Anti monopoly Compliance Management Measures of Hangzhou Shanke Intelligent Technology Co., Ltd." formulated by the company aims to urge all departments to implement them and ensure that compliance requirements are integrated into all business areas. Shanke Intelligent's anti monopoly compliance management refers to the implementation of management activities, including system development, risk identification, risk response, assessment and evaluation, and compliance training, aimed at preventing and reducing compliance risks in the anti monopoly field, targeting the company and its employees' business management behaviors. Encourage senior management personnel of the company to make and fulfill clear and open antitrust compliance commitments. Implement corresponding anti monopoly compliance commitment mechanisms for key positions and personnel. Organize or assist relevant departments to carry out antitrust compliance education and training, provide antitrust compliance consulting for functional departments and employees, and further improve the ability of employees to identify normal competitive behaviors and possible monopolistic and illegal behaviors.

Weichai Power and Jingfeng Mingyuan: carry out antitrust compliance training for employees to cultivate a sense of fair competition

The Guide encourages operators to invest effective resources through strengthening education and training to help and urge employees to understand and comply with relevant provisions of the antitrust law, and enhance their awareness of antitrust compliance. In the current overall situation of increasingly strict antitrust review, listed companies have strengthened their internal antitrust training activities to prevent accidentally touching the regulatory red line in their daily operations.

Weichai Power's 2021 social responsibility report clearly mentions that the company has conducted special training on antitrust legal knowledge to enhance employees' awareness of avoiding antitrust compliance risks in the business process.

Jingfeng Mingyuan introduced the content of antitrust compliance training in more detail in its bulletin. Jingfeng Mingyuan stated that in 2021, the company conducted multiple antitrust compliance training, shared antitrust red line cases with employees, and misused market dominance by popular science. The company updates the pricing system plan in accordance with antitrust compliance requirements, recommends distributors to sell to customers at standard recommended retail prices and customer recommended retail prices, but does not make mandatory requirements. The company also states that under no circumstances should the above prices be construed as imposing any form of restriction on the actual sales prices of distributors.

COSCO Haikong and Conbey: Improve enterprise antitrust compliance construction by combining internal control and training

COSCO Holdings mentioned in its 2021 Sustainable Development Report that in 2021, the company had formulated the "Anti monopoly Compliance Management Measures" and "Anti monopoly Emergency Response Plan": to comply with anti monopoly regulations, clarify the anti monopoly compliance requirements for the company's daily operations, formulate various implementation requirements for anti monopoly management, and determine the responsible departments for various anti monopoly management matters; Clarify the principles for responding to antitrust emergencies, emergency response agencies and responsibilities, and emergency reporting procedures. At the same time, in order to promote employees to strengthen their learning of antitrust compliance management knowledge and understand their own level of antitrust compliance management, COSCO Shipping and Transportation Organization conducted online antitrust compliance testing for employees throughout the entire system of centralized transportation, and conducted separate tests for domestic and foreign employees, with a participant passing rate of over 99%.

Conbey stated that the company adheres to the principle of fair competition in its daily business activities in 2021 and is committed to maintaining a good market economic order; The "Anti monopoly Compliance Guidelines" have been formulated and issued, promoting the promotion of laws and regulations related to anti unfair competition, and taking multiple measures to cultivate a compliance awareness of fair competition. In addition, the company conducted six special training sessions on the rule of law with the theme of anti monopoly compliance throughout the year.

Bull Group: orderly promote the construction of internal control and antitrust compliance, and continuously reduce various potential risks in the company's production, operation, and other aspects

On September 27, 2021, Gongniu Group was fined 294.81 million yuan by the Zhejiang Provincial Market Supervision and Administration in accordance with the relevant provisions of the "Anti monopoly Law of the People's Republic of China" for entering into and implementing fixed and limited price monopoly agreements with downstream distributors in the course of operating and selling its power connection and extension products. For this reason, Bull Group is facing a more urgent demand for antitrust compliance: how to correct antitrust violations in a short period of time and restore market confidence has become the primary business consideration for the entire group.
After the announcement of the punishment decision, Bull Group immediately announced the establishment of an anti monopoly compliance self inspection and rectification team led by the chairman and president, to organize comprehensive internal self inspection, rectification and implementation, continuously strengthen the legal awareness and responsibility awareness of the enterprise and relevant personnel, operate in compliance with the law, achieve sustainable and high-quality development, and take this opportunity to comprehensively improve the company's relevant governance structure. The Group stated in its announcement on the investigation of reception agencies released on March 17, 2022 that the antitrust compliance rectification has effectively promoted the improvement of the company's compliance management level and operational quality, and will lay a better foundation for the company's future sustainable development.

According to the disclosure of Bull Group, the core of the company's antitrust compliance rectification is to strengthen internal control and risk control, deepen antitrust compliance construction, and continuously reduce enterprise operational risks. The company has determined "comprehensive coverage, enhanced responsibility, synergy, and effectiveness" as the principles to be followed in antitrust compliance management, and has formulated the "Anti monopoly Compliance Management System" as the basis for antitrust compliance management. Based on the "Anti monopoly Compliance Management System", the company requires that anti monopoly compliance requirements cover all product channels, functional departments, and all employees of the company, as well as all areas of corporate governance, operation, and management, throughout the entire process of decision-making, implementation, and supervision. Strengthening anti monopoly compliance management is an important content of the company's primary responsible person's responsibility to promote the construction of legal compliance. Establish an overall antitrust compliance responsibility system, clarify the antitrust compliance responsibilities of management personnel and employees at all positions, and supervise the effective implementation. At the same time, the company actively promotes the coordination and integration of antitrust compliance management and antitrust legal risk prevention, supervision, audit, internal control, comprehensive risk management, etc., to ensure the effective operation of the antitrust compliance management system and the effective performance of antitrust compliance responsibilities.

In the process of antitrust compliance rectification, Bull Group has established an antitrust compliance system featuring "compliance risk control+compliance risk management+compliance management guarantee", and actively conducted compliance training. According to the business scope, business scale, and antitrust compliance management requirements, the company has gradually established and improved the antitrust compliance management system, mainly including: (1) improving the rules, regulations, and process system of antitrust compliance management; (2) Formulated an antitrust compliance management manual for the business area; (3) Extending and refining various antitrust compliance management rules and procedures for the daily operation and management of enterprises. At the same time, the company has developed a timely plan for identified antitrust compliance risks, clarified emergency response responsibilities, paths, and requirements, and taken appropriate control and response measures for various antitrust legal risks. Finally, the company ensures the smooth progress of antitrust compliance work by establishing an ex ante antitrust compliance review, actively consulting with internal agencies, external experts, and antitrust law enforcement agencies on antitrust compliance, and irregularly conducting antitrust compliance audits.

Attachment: Bull Group Antitrust Compliance Management Process

summary

With the establishment of the National Anti monopoly Bureau in late 2021, anti monopoly supervision has entered a new stage. Anti monopoly compliance, as a powerful measure to promote fair competition in the market and optimize the business environment in the market, has been highly valued by various operators in the past two years, as can be seen from the compliance practices of listed companies. And drives more enterprises to strengthen their compliance work, thereby achieving stability and long-term development.

If you have any antitrust compliance questions, please contact the author.