Chapter 1 General Principles
Article 1
To standardize the internal reporting of major information at Yunnan Baiyao Group Co., Ltd. (hereinafter referred to as "the Company"), ensure the rapid transmission, collection, and effective management of significant internal information, and disclose information in a timely, accurate, comprehensive, and complete manner to protect investors' legitimate rights and interests, this system is formulated in accordance with the "Securities Law of the People's Republic of China," "Corporate Governance Guidelines for Listed Companies," "Administrative Measures for Information Disclosure of Listed Companies," "Shenzhen Stock Exchange Listing Rules," and "Self-Regulatory Guidelines No. 5 for Listed Companies on the Shenzhen Stock Exchange - Management of Information Disclosure Affairs," combined with the "Articles of Association" and the actual situation of the Company.
Article 2
The major information reporting system refers to the obligation of relevant parties to report significant information that may have a substantial impact on the trading price of the Company's stock and its derivatives when such situations or events occur, arise, or are about to occur. The obligated parties must report the relevant information to the Company’s board secretary and relevant institutions immediately, and the board secretary will report to the board of directors.
Article 3
When the board secretary needs to understand the situation and progress of major matters, the internal information reporting obligors (hereinafter referred to as "reporting obligors") shall actively cooperate and assist, providing timely, accurate, and complete responses and relevant materials as required.
Article 4
The term "internal information reporting obligors" as used in this system includes: (1) heads of various departments, business groups (departments), and subsidiaries of the Company; (2) directors and senior management of the Company; (3) shareholders holding more than 5% of the Company's shares and their concerted actors; (4) directors, supervisors (if any), and senior management of companies in which the Company has a stake; (5) other individuals who may be aware of events that significantly impact the Company.
Article 5
This system applies to the Company, its subsidiaries, and business groups (departments).
Chapter 2 Scope of Major Information
Article 6
Major information of the Company includes, but is not limited to, significant transactions and daily transactions, major related-party transactions, major risk matters, major changes, and other significant matters that occur or are about to occur within the Company, its subsidiaries, and business groups (departments), as well as the ongoing progress of the aforementioned matters. When internal information reporting obligors become aware of the above major information within their authority and have not fulfilled their reporting obligations, they must report the information to the Company’s board office immediately upon becoming aware, and submit relevant materials for filing with the board office.
Article 7
The "major transactions" and "daily transactions" referred to in this system include: (1) Major transactions, which include the following types of matters that occur outside of daily operational activities: 1. Asset purchases; 2. Asset sales; 3. External investments (including entrusted financial management, investments in subsidiaries, etc.); 4. Providing financial assistance (including entrusted loans, etc.); 5. Providing guarantees (including guarantees for controlling subsidiaries, etc.); 6. Leasing in or out assets; 7. Entrusted or entrusted management of assets and businesses; 8. Gifts or receipt of assets; 9. Debt or equity restructuring; 10. Transfer or acquisition of research and development projects; 11. Signing licensing agreements; 12. Waiving rights (including waiving preemptive purchase rights, preemptive capital contribution rights, etc.); 13. Other transactions recognized by the Shenzhen Stock Exchange. Daily transactions refer to matters related to daily operations, including: 1. Purchasing raw materials, fuel, and power; 2. Receiving services; 3. Selling products and goods; 4. Providing services; 5. Engineering contracting; 6. Other transactions related to the Company's daily operations. In asset swaps involving transactions specified in the preceding paragraph, the provisions for "major transactions" apply.