Chapter One General Principles
Article 1
To standardize the management of insider information at Zhejiang Bofei Electric Co., Ltd. (hereinafter referred to as "the Company"), strengthen confidentiality efforts, maintain fairness in information disclosure, and protect the legitimate rights and interests of investors, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China" (hereinafter referred to as "the Securities Law"), "Management Measures for Information Disclosure of Listed Companies," "Guidance No. 5 for the Supervision of Listed Companies—Registration Management System for Insider Information Persons," "Shenzhen Stock Exchange Listing Rules," "Self-Regulatory Guidelines No. 1 for Main Board Listed Companies," 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.
Article 2
The Company's board of directors is the management body for insider information and must ensure that the records of insider information persons are true, accurate, and complete. The chairman is the primary responsible person for insider information management, while the board secretary is responsible for the management work. The securities department is specifically responsible for the daily management of insider information, authorized by the board of directors and the board secretary.
Article 3
When submitting the records of insider information persons, the Company must provide a written commitment ensuring that the contents of the submitted records and the memorandum of significant matters are true, accurate, and complete, and that all insider information persons have been informed of the relevant legal regulations. The chairman and board secretary must sign the written commitment. The audit committee of the Company is responsible for supervising the implementation of the insider information person registration management system.
Article 4
Before the legal disclosure of insider information, no insider information person may report, transmit, or publish any content or materials related to the Company's insider information through any medium or form, unless it is to fulfill legal obligations or has been approved by the board secretary.
Article 5
The Company's directors, senior management, and other insider information persons must maintain confidentiality regarding insider information. They must not disclose insider information or engage in insider trading or assist others in manipulating securities trading prices.
Article 6
This system applies to the Company and its subordinate departments, branches, holding subsidiaries, and companies in which the Company can exert significant influence. The aforementioned entities must fulfill internal reporting obligations and establish reporting procedures in accordance with this system and information disclosure management requirements.
Chapter Two Meaning and Scope of Insider Information
Article 7
Insider information refers to information that is known to insiders and relates to the Company's operations, finances, or has a significant impact on the market price of the Company's securities, which has not been officially disclosed in the media or websites designated by the China Securities Regulatory Commission.
Article 8
The scope of insider information includes but is not limited to:
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Significant changes in the Company's operational policies and scope;
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Major investment actions by the Company, such as purchasing or selling significant assets exceeding 30% of the total assets within a year, or mortgaging, pledging, selling, or scrapping major operational assets exceeding 30% of those assets;
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Entering into important contracts, providing significant guarantees, or engaging in related party transactions that may significantly affect the Company's assets, liabilities, equity, and operating results;
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Significant debts or defaults on major debts;
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Significant losses or damages;
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Significant changes in external conditions affecting the Company's operations;
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Changes in the Company's directors or general manager, or inability of the chairman or general manager to perform their duties;
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Significant changes in the shareholding or control of shareholders holding more than