Chapter 1 General Principles
Article 1
To standardize the external guarantee behavior of Beijing Weitongli Electric Co., Ltd. (hereinafter referred to as "the Company"), effectively control the risks associated with external guarantees, prevent financial risks, ensure stable operations, and promote healthy and stable development of the Company, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Civil Code of the People's Republic of China," "Regulatory Guidelines No. 8 for Listed Companies - Regulatory Requirements for Fund Transactions and External Guarantees," "Self-Regulatory Guidelines No. 1 for Main Board Listed Companies of the Shenzhen Stock Exchange," "Listing Rules of the Shenzhen Stock Exchange," and relevant provisions of the "Articles of Association of Beijing Weitongli Electric Co., Ltd." (hereinafter referred to as "the Articles of Association") and its rules.
Article 2
This system applies to the Company, wholly-owned subsidiaries, and holding subsidiaries. The term "external guarantee" refers to the Company and its wholly-owned or holding subsidiaries providing guarantees, mortgages, pledges, or other forms of guarantees to third parties, including guarantees provided by the Company for its wholly-owned and holding subsidiaries; guarantees provided by wholly-owned subsidiaries and holding subsidiaries for entities or organizations within the scope of the Company's consolidated financial statements, etc. Guarantees provided by the Company and holding subsidiaries for their own debts are not applicable under this system. The term "total amount of external guarantees by the Company and its holding subsidiaries" refers to the sum of the total external guarantees provided by the Company, including guarantees to holding subsidiaries, and the total external guarantees provided by the Company and holding subsidiaries. The forms of guarantees mainly include guarantees, mortgages, pledges, liens, and deposits.
Article 3
No external guarantees may be provided without the approval of the Company's board of directors or shareholders' meeting. Branches of the Company are not allowed to provide external guarantees, and subsidiaries may not provide external guarantees without the Company's approval. The provision of counter-guarantees by the Company and holding subsidiaries shall follow the relevant provisions for guarantees, and the amount of counter-guarantees shall be used as the standard for fulfilling corresponding review procedures and information disclosure obligations, except for counter-guarantees provided for guarantees based on their own debts.
Article 4
All directors of the Company shall prudently consider and strictly control the debt risks arising from external guarantees and shall bear joint liability for losses arising from violations or improper external guarantees.
Chapter 2 Qualifications of Guaranteed Enterprises
Article 5
In principle, the Company only provides guarantees for holding subsidiaries and wholly-owned subsidiaries; if guarantees are frequently required between wholly-owned subsidiaries, holding subsidiaries, and between holding subsidiaries, making it difficult to submit each agreement for board or shareholder review, the Company may estimate the annual total guarantee amount and follow the corresponding decision-making procedures of the board of directors or shareholders' meeting based on the amount of external guarantees and the qualifications of the guaranteed parties.
Article 6
Strict restrictions are placed on providing any form of guarantees to companies or organizations other than holding subsidiaries and wholly-owned subsidiaries. The Company must promptly report to the board of directors and assess guarantee risks in the following situations: (1) when the Company no longer has control over the guaranteed company due to changes in equity structure, and the guarantee has not been released, but it is necessary to continue providing guarantees upon expiration; (2) when guarantees are provided outside the holding subsidiaries according to the investment ratio or when counter-guarantees are needed without following the investment ratio; (3) other situations requiring guarantees outside holding subsidiaries.