Chapter 1 General Principles
Article 1
To strengthen the management of fundraising activities by Zhejiang Bofei Electric Co., Ltd. (hereinafter referred to as "the Company"), standardize the use of raised funds, and effectively protect the interests of investors, this system is formulated based on the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange Listing Rules" (hereinafter referred to as "Listing Rules"), "Regulations on the Supervision of Fundraising by Listed Companies," "Self-Regulatory Guidelines No. 1 for Listed Companies on the Main Board of the Shenzhen Stock Exchange," 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 term "raised funds" in this system refers to the funds raised by the listed company through the issuance of stocks or other equity-like securities for specific purposes, excluding funds raised for implementing equity incentive plans. The term "excess funds" refers to the portion of the actual net amount raised that exceeds the planned fundraising amount.
Article 3
When formulating the fundraising plan, the Company should prudently consider its ability to utilize funds and its asset-liability structure, in compliance with the regulations of the China Securities Regulatory Commission and other relevant documents. The Company must use the raised funds cautiously, ensuring that their use aligns with the commitments made in the prospectus or fundraising statement, and must not arbitrarily change the direction of the raised funds. The raised funds should be used exclusively for their intended purposes. The Company must disclose the actual use of raised funds truthfully, accurately, and completely, and engage an accounting firm to issue a verification report on the storage and use of raised funds during the annual audit. In the event of serious circumstances affecting the normal progress of the fundraising investment plan, timely announcements must be made.
Article 4
The Board of Directors of the Company is responsible for establishing and improving this system and ensuring its effective implementation. The fundraising management system should clearly specify the storage, use, changes, supervision of dedicated accounts for raised funds, as well as the application for the use of raised funds, hierarchical approval authority, decision-making procedures, risk control measures, information disclosure procedures, and accountability.
Article 5
The Board of Directors should continuously monitor the storage, management, and use of raised funds, effectively preventing investment risks and improving the efficiency of fund usage. Company directors and senior management should diligently supervise the standardized use of raised funds, consciously maintain the safety of the raised funds, and must not participate in, assist, control, or condone any unauthorized or disguised changes in the use of raised funds.
Article 6
If the fundraising investment projects are implemented through the Company's subsidiaries or other controlled enterprises, the Company must ensure that these subsidiaries or controlled enterprises comply with this system.
Article 7
The Company should prudently select commercial banks and open dedicated accounts for raised funds (hereinafter referred to as "dedicated accounts"). The raised funds should be stored in dedicated accounts approved by the Board of Directors for centralized management, and these accounts must not hold non-raised funds or be used for other purposes. If the Company has more than two rounds of financing, separate dedicated accounts should be established for each round. Excess funds should also be managed in dedicated accounts.