Chapter 1 General Principles
Article 1
To standardize the storage, use, and management of funds raised by Hubei Ping An Electric Technology Co., Ltd. (hereinafter referred to as "the Company"), improve the efficiency of fund usage, and maximize the protection of investors' legal rights, these measures are formulated in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Shenzhen Stock Exchange Listing Rules, the Self-Regulatory Guidelines for Main Board Listed Companies, the Regulations on the Supervision of Funds Raised by Listed Companies, and other relevant laws and regulations, as well as the Articles of Association of Hubei Ping An Electric Technology Co., Ltd. (hereinafter referred to as "the Articles of Association"), and in consideration of the actual situation of the Company.
Article 2
The funds raised referred to in these measures are those raised by the Company through the issuance of stocks or other equity-like securities for specific purposes, excluding funds raised for the implementation of equity incentive plans. The term "excess funds" refers to the portion of the actual net funds raised that exceeds the planned amount.
Article 3
The Company shall prudently use the raised funds, ensuring that their use aligns with the commitments made in the issuance application documents, and shall not arbitrarily change the direction of the raised funds. Any change in the use of raised funds must be approved by the Board of Directors and the Shareholders' Meeting, and the Company must fulfill its information disclosure obligations and other relevant legal obligations.
Article 4
The Company shall disclose the actual use of raised funds truthfully, accurately, and completely. In the event of significant impacts on the normal progress of the investment plan, timely announcements must be made. If the investment projects (hereinafter referred to as "raised fund projects") are implemented through the Company's subsidiaries or other controlled enterprises, the Company shall ensure that these subsidiaries or controlled enterprises comply with these measures and relevant laws, regulations, and provisions of the Shenzhen Stock Exchange. For overseas investment projects, the Company and its sponsors shall take effective measures to ensure the safety and proper use of the raised funds, and disclose specific measures and actual effects in the special report on the storage, management, and use of raised funds.
Article 5
The raised funds shall be used exclusively for their intended purpose. The use of raised funds must comply with national industrial policies and relevant laws and regulations, adhere to sustainable development principles, and fulfill social responsibilities. In principle, they should be used for the main business of the Company to enhance its competitiveness and innovation capabilities. If the China Securities Regulatory Commission has other regulations regarding the use of funds raised through the issuance of shares or convertible bonds for asset purchases, those regulations shall prevail. The Board of Directors shall be responsible for formulating detailed plans for the use of raised funds, organizing the specific implementation of raised fund projects, and ensuring the transparency and standardization of fund usage. The Board of Directors shall disclose the direction and usage of raised funds, as well as the effectiveness of their use, to fully protect investors' right to know. The Board of Directors shall continuously monitor the storage, management, and use of raised funds, effectively prevent investment risks, and improve the efficiency of fund usage. The Company's directors and senior management shall act diligently and responsibly to ensure the standardized use of raised funds, consciously safeguard the safety of the raised funds, and shall not manipulate the Company to arbitrarily or indirectly change the use of raised funds.