Chapter 1 General Principles
Article 1
To standardize the investment behavior of Zhejiang Bofei Electric Co., Ltd. (hereinafter referred to as "the Company"), reduce investment risks, enhance investment returns, and protect the legitimate rights and interests of the Company, shareholders, and creditors, this rule is formulated in accordance with the "Company Law of the People's Republic of China," "Stock Listing Rules," 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 "external investment" in this system refers to the investment behavior of the Company using monetary funds or non-monetary assets such as physical goods, intellectual property, and land use rights that can be valued in monetary terms and legally transferred. It specifically refers to the Company's long-term equity investments and does not include entrusted financial management, securities investments, or derivative transactions. Actions that result in an increase or decrease in the Company's externally invested assets through acquisition, replacement, sale, or other means are also applicable under this system. The aforementioned external investments do not include the Company's purchase of raw materials, fuel, and power, as well as the purchase or disposal of assets related to operations such as product sales. For external investments where the Company's management system has specific provisions (such as securities investment and derivative transaction management systems, entrusted financial management systems, etc.), those specific management systems shall be followed; otherwise, the Company's external investments shall comply with this system. The term "transaction" in this system specifically refers to external investment matters. The term "entrusted financial management" refers to the Company's entrustment of banks, trusts, securities, funds, futures, insurance asset management institutions, financial asset investment companies, private equity fund managers, and other professional financial management institutions to invest and manage its assets or purchase related financial products. The term "securities investment" includes new stock allocations or subscriptions, securities repurchases, investments in stocks and depositary receipts, bond investments, and other investment behaviors recognized by exchanges. The term "derivative transactions" refers to transactions involving products such as forwards, futures, swaps, and options, or financial instruments that combine the characteristics of the aforementioned products. The underlying assets of derivatives can be securities, indices, interest rates, exchange rates, currencies, commodities, etc., or combinations of the above. The Company shall conduct securities investments, derivative transactions, and entrusted financial management in accordance with the requirements of relevant Company regulations.
Article 3
The Company's investments shall adhere to the following principles:
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Comply with national laws and regulations and align with national industrial policies;
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Align with the Company's development strategy;
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Focus on economic benefits, reasonably allocate corporate resources, and promote the optimization of elements;
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Ensure cooperation and mutual supervision among departments;
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Uphold the principle of protecting the legitimate rights and interests of the Company and shareholders.