Chapter 1 General Principles
Article 1
To ensure that related party transactions between Beijing Weitongli Electric Co., Ltd. (hereinafter referred to as "the Company") and related parties comply with the principles of fairness, justice, and openness, and to ensure that such transactions do not harm the interests of the Company and non-related shareholders, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange Listing Rules," "Self-Regulatory Guidelines No. 7 for Listed Companies on the Shenzhen Stock Exchange - Transactions and Related Party Transactions," and other relevant laws, regulations, and normative documents, as well as the Articles of Association of Beijing Weitongli Electric Co., Ltd. (hereinafter referred to as "the Articles of Association") and its rules.
Article 2
Related party transactions between the Company and related parties shall comply with the provisions of relevant laws, regulations, normative documents, and the Articles of Association, in addition to the provisions of this system.
Article 3
The Company shall ensure the legality, necessity, reasonableness, and fairness of related party transactions, maintain the Company's independence, and shall not use related party transactions to adjust financial indicators or harm the interests of the Company. Parties to the transaction shall not conceal related relationships or take other measures to evade the Company's related transaction review procedures and information disclosure obligations.
Article 4
Related party transactions of the Company refer to matters that may lead to the transfer of resources or obligations between the Company or its consolidated subsidiaries and related parties.
Article 5
When confirming and handling related relationships and related party transactions, the Company shall adhere to the following basic principles:
- Avoid or minimize related party transactions as much as possible;
- When determining the price of related party transactions, adhere to the basic commercial principles of fairness, justice, openness, and equivalent compensation;
- For related party transactions that occur, fulfill the relevant information disclosure requirements;
- When conducting related party transactions, the Company shall adhere to the principle of honesty and credibility and shall not harm the legitimate rights and interests of all shareholders, especially minority shareholders.