Anhui Gulin Wool Textile Co., Ltd.
Management System for External Investments
(Revised April 2026)
Chapter 1 General Provisions
Article 1 To strengthen the external investment management of Anhui Gulin Wool Textile Co., Ltd. (hereinafter referred to as the "Company"), standardize the Company's external investment activities, and protect the legitimate rights and interests of the Company and its shareholders, this System is formulated in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), relevant laws, regulations, normative documents, and the "Articles of Association of Anhui Gulin Wool Textile Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in conjunction with the Company's actual situation.
Article 2 External investment as referred to in this System means investment activities carried out by the Company domestically and abroad for the purpose of profit or value preservation and appreciation. Investments are divided into short-term investments and long-term investments. Short-term investments mainly refer to investments within one year, including various stocks, bonds, funds, dividend-type insurance, etc.; long-term investments mainly refer to investments with a term exceeding one year that cannot be realized at any time or are not intended to be realized at any time, including bond investments, equity investments, and other investments. External investments mainly refer to one of the following situations: (1) Equity investment in enterprises established solely or jointly with others; (2) Acquisition of all or part of other domestic or foreign economic entities related to the Company's business; (3) Capital increase, share expansion, or equity acquisition investment in existing or newly established investment enterprises; (4) Acquisition of assets of other companies; (5) Investment in stocks and funds; (6) Investment in bonds, entrusted loans, and other bonds; (7) Investment in operating projects and assets of the Company's headquarters; (8) Other investments.
Article 3 The basic principles for the Company's external investment management should be: (1) Compliance with national laws, regulations, industrial policies, and the relevant provisions of the Articles of Association, and alignment with the Company's business objectives; (2) Facilitating the Company's sustained and coordinated development, enhancing core competitiveness and overall strength, and maximizing shareholder value; (3) Promoting the effective allocation of resources, improving asset quality, preventing operational risks, increasing investment returns, and safeguarding shareholder interests; (4) Operating in accordance with the law, improving work efficiency, and implementing management responsibilities.
Article 4 This System applies to all external investment activities of the Company and its wholly-owned subsidiaries and controlling subsidiaries (hereinafter referred to as "Subsidiaries").
Chapter 2 Organizational Structure for External Investment Management
Article 5 The Company's Shareholders' Meeting, Board of Directors, and General Manager are the decision-making bodies for the Company's external investments. They shall make decisions on the Company's external investments within the scope of authority determined by the "Articles of Association," "Rules of Procedure for Shareholders' Meetings," "Rules of Procedure for Board of Directors' Meetings," and "Working Rules for the General Manager." No other department or individual has the authority to make decisions on external investments.
Article 6 The Strategy and Sustainable Development Committee of the Company's Board of Directors is a special deliberation body of the Board of Directors, responsible for coordinating, organizing, and analyzing external investment projects, and providing recommendations for decision-making.
Article 7 The Company's General Manager is the primary responsible person for the Company's external investment business. The responsible personnel of relevant departments of the Company for invested enterprises shall, based on the Company's development strategy, collect and organize information on investment projects, conduct preliminary evaluations of investment value for proposed projects, review them, and submit recommendations.