Chapter 1 General Principles
Article 1
To standardize the management of stock holdings and trading by directors and senior management of Zhejiang Bofei Electric Co., Ltd. (hereinafter referred to as "the Company"), this system is formulated in accordance with the Company Law of the People's Republic of China (hereinafter referred to as "the Company Law"), the Securities Law of the People's Republic of China (hereinafter referred to as "the Securities Law"), the Management Rules for Shares Held by Directors and Senior Management of Listed Companies, the Listing Rules of the Shenzhen Stock Exchange, the Self-Regulatory Guidelines No. 10 for Listed Companies on the Shenzhen Stock Exchange regarding Share Changes, and the Articles of Association of Zhejiang Bofei Electric Co., Ltd. (hereinafter referred to as "the Articles of Association"), as well as relevant national laws, regulations, and normative documents, combined with the actual situation of the Company.
Article 2
This system applies to the management of stock holdings and trading by the Company's directors and senior management. Directors and senior management must strictly fulfill their commitments regarding the proportion of shares held, holding period, methods of change, and change prices.
Article 3
The shares held by the Company's directors and senior management refer to all shares registered in their names and those held in others' accounts. If directors and senior management engage in margin trading, the shares held also include those recorded in their credit accounts.
Article 4
Before trading the Company's stocks and their derivatives, directors and senior management must be aware of the prohibitions against insider trading, market manipulation, and short-term trading as stipulated in the Company Law, Securities Law, and other relevant regulations. Their rights to dividends, voting, and preemptive subscription during the lock-up period shall not be affected.
Chapter 2 Reporting of Stock Trading
Article 5
The Company’s board secretary is responsible for managing the identity and stock holding data of the Company’s directors and senior management, and will uniformly handle online reporting of personal information for directors and senior management each quarter.
Article 6
Directors and senior management must authorize the Company to report their personal and their immediate family members' (including spouses, parents, children, siblings, etc.) identity information (including names, positions, ID numbers, securities accounts, and resignation dates) to the Shenzhen Stock Exchange at the following times:
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When new directors and senior management are appointed during the Company’s application for stock listing;
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Within two trading days after the shareholders' meeting (or employee representative meeting) approves the appointment of new directors;
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Within two trading days after the board approves the appointment of new senior management;
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Within two trading days after any changes to the previously reported personal information of current directors and senior management;
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Within two trading days after resignation;
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Other times as required by the Shenzhen Stock Exchange.
The above reporting information is considered an application for the management of their shares held in accordance with relevant regulations.
Article 7
The Company and its directors and senior management must ensure that the information reported to the Shenzhen Stock Exchange is true, accurate, timely, and complete, and agree to the timely disclosure of changes in their holdings by the Shenzhen Stock Exchange, bearing the legal responsibilities arising therefrom.