Chapter 1 General Principles
Article 1
To establish a long-term mechanism to prevent the occupation of funds by controlling shareholders, actual controllers, and related parties of Hubei Ping An Electric Technology Co., Ltd. (hereinafter referred to as "the Company"), and to eliminate such behaviors, 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 Regulatory Guidelines for Listed Companies No. 8—Regulatory Requirements for Fund Transactions and External Guarantees, the Shenzhen Stock Exchange Listing Rules, and relevant provisions of the Articles of Association of Hubei Ping An Electric Technology Co., Ltd. (hereinafter referred to as "the Articles of Association").
Article 2
The directors and senior management of the Company have a legal obligation to maintain the safety of the Company's funds.
Article 3
The Company, its branches, holding subsidiaries, and their affiliated companies must strictly prevent and limit the occupation of Company funds by controlling shareholders, actual controllers, and other related parties in operational fund transactions, including those arising from normal related transactions. Controlling shareholders and actual controllers must take effective measures to ensure the integrity of Company assets, independence of personnel, financial independence, institutional independence, and business independence, and must not influence the Company's independence in any way.
When the Company has no controlling shareholder or actual controller, the largest shareholder and its ultimate controller shall fulfill the relevant legal and regulatory requirements in accordance with the standards applicable to controlling shareholders and actual controllers.
Chapter 2 Prevention of Fund Occupation by Controlling Shareholders, Actual Controllers, and Other Related Parties
Article 4
The Company shall prevent controlling shareholders, actual controllers, and other related parties from directly or indirectly occupying the Company's funds, assets, and resources through various means. Controlling shareholders, actual controllers, and other enterprises they control shall not use related transactions, asset restructuring, advance payments, external investments, guarantees, profit distribution, or other means to directly or indirectly infringe upon the Company's funds and assets, thereby harming the legitimate rights and interests of the Company and other shareholders.