Chapter 1 General Provisions
Article 1 To regulate the risk investment activities of Huabang Life Health Co., Ltd. (hereinafter referred to as the "Company"), prevent investment risks, strengthen risk control, protect the rights and interests of investors and the interests of the Company, in accordance with the "Securities Law of the People's Republic of China," the "Stock Listing Rules of the Shenzhen Stock Exchange," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Normative Operation of Main Board Listed Companies," and other laws, regulations, and normative documents, as well as the "Articles of Association of Huabang Life Health Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in combination with the actual situation of the Company, this System is hereby formulated.
Article 2 For the purposes of this System, risk investment includes securities investment, derivatives trading, and other risk investment activities recognized by the Shenzhen Stock Exchange. Among these, securities investment includes new share placements or subscriptions, securities repurchases, investments in stocks and depositary receipts, bond investments, entrusted wealth management, and other investment activities recognized by the Shenzhen Stock Exchange. Derivatives include forward contracts, futures contracts, swaps (exchanges), options, and financial instruments that mix the characteristics of the above products. The underlying assets of derivatives can be securities, indices, interest rates, exchange rates, currencies, commodities, or a combination of the above.
The following situations are not applicable to this System: (1) Securities investment and derivatives trading activities that are the Company's main business operations; (2) Fixed-income investments or investments that guarantee principal; (3) Participating in the rights issue of other listed companies or exercising preferential subscription rights; (4) Securities investments that purchase shares of other listed companies exceeding 10% of the total share capital, with the intention of holding for more than 3 years; (5) Investments made by the Company prior to its initial public offering and listing.
The Company shall arrange and use funds reasonably, strive to develop the Company's main business, and shall not use raised funds for securities investment and derivatives trading.
Futures products used by the Company for hedging purposes shall be limited to products related to the Company's production and operation or the raw materials required.
Article 3 Principles of Risk Investment
- The Company's risk investments shall comply with relevant national laws, regulations, and normative documents;
- The Company's risk investments shall be prudent, with strengthened risk control and reasonable benefit assessment;
- The Company's risk investments shall be compatible with its asset structure, moderate in scale, and within its capabilities, without affecting the normal operation of its main business.
Chapter 2 Decision-Making for Risk Investment
Article 4 If the total amount of the Company's securities investments exceeds 10% of the Company's latest audited net assets and the absolute amount exceeds RMB 10 million, it shall be reviewed and approved by the Board of Directors and information disclosure obligations shall be fulfilled in a timely manner before the investment.
If the total amount of the Company's securities investments exceeds 50% of the Company's latest audited net assets and the absolute amount exceeds RMB 50 million, or if it is required to be submitted for shareholder approval according to the "Articles of Association," it shall be submitted for shareholder approval and disclosed in a timely manner before the investment.
The above amounts shall be calculated based on the amount incurred. If the cumulative amount incurred within twelve consecutive months reaches the above standards, the Company shall also fulfill the corresponding approval procedures and information disclosure obligations. Those that have fulfilled the relevant obligations according to the above regulations shall not be included in the cumulative calculation.