1. Purpose
To promote the achievement of strategic goals at Guangdong Zhongnan Steel Co., Ltd. (hereinafter referred to as "the Company"), strengthen operational management, coordinate business activities, optimize internal resource allocation, fully utilize the guiding and controlling role of budget management, and ensure the realization of the Company's operational objectives, this management system is specially formulated.
2. Scope of Application
This system applies to all units, controlled subsidiaries, and entrusted management subsidiaries of the Company (hereinafter referred to as "units").
3. Management Principles
3.1 Definition of Budget
The budget referred to in this system is a comprehensive budget, which is a core tool for the Company centered around its development strategy, covering business budgets, investment budgets, human resource budgets, financial budgets, and special budgets (such as energy conservation and environmental protection, technological innovation, etc.).
3.2 Budget Management
Budget management refers to the Company's tracking, coordination, control, and improvement of the budget preparation and execution process based on budget objectives during the budget period, utilizing management functions such as planning, organizing, controlling, and leading. This process aims to promote the standardization and optimization of the Company's business processes and ensure the completion of operational objectives during the budget period, serving as an important means to guarantee the smooth implementation of the Company's strategy and planning.
3.3 Importance of Company Budget
The Company budget is an important component of the business plan and is the result and refinement of the annual business plan. It involves scientific setting of budget objectives based on external market assessments and optimizing internal production and operational arrangements and resource allocation.
3.4 Principles of Budget Management
The principles of budget management include approval by the shareholders' meeting, review by the board of directors, preliminary research and discussion by the party committee, responsibility of the general manager (president), layered management, participation of all employees, and control throughout the entire process.
4. Management Responsibilities
4.1 Shareholders' Meeting
The shareholders' meeting is the highest decision-making body for the Company's budget management, primarily responsible for reviewing and approving the annual financial budget plan and annual budget adjustment plan of the Company.
4.2 Board of Directors
The board of directors is mainly responsible for approving the budget management system, formulating the annual financial budget plan, and the annual budget adjustment plan of the Company.
4.3 Management Team
The main responsibilities of the management team include:
4.3.1
Proposing principled and guiding requirements for the Company's budget management.
4.3.2
Reviewing drafts of the annual budget plan and annual budget adjustment plan.
4.3.3
Organizing the implementation of the annual budget, coordinating and guiding any issues arising during the budget implementation process, and proposing directions and measures for further efforts by the Company.