Chapter 1 General Principles
Article 1
To standardize the fundraising management of Zhejiang Kane Special Materials Co., Ltd. (hereinafter referred to as "the Company") and improve the efficiency of fund usage, this management system is formulated in accordance with relevant regulations including the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, and other applicable rules, combined with the actual situation of the Company.
Article 2
The term "raised funds" in this guideline refers to funds raised by the listed company through the issuance of stocks or other equity-like securities for specific purposes, excluding funds raised for implementing equity incentive plans. "Excess funds" refer to the portion of actual net raised funds exceeding the planned amount.
Article 3
The Company shall use raised funds exclusively for their intended purposes. The use of raised funds must comply with national industrial policies and relevant laws and regulations, embody sustainable development principles, and fulfill social responsibilities. In principle, funds should be used for the main business to enhance the Company's competitiveness and innovation capabilities. The Company must use raised funds prudently, ensuring that their use aligns with the commitments made in the issuance application documents, and must not arbitrarily change the direction of fund usage. The Company must disclose the actual usage of raised funds truthfully, accurately, and completely. If there are significant impacts on the normal progress of the investment plan, timely announcements must be made, and an accounting firm must be engaged to verify the storage, management, and usage of raised funds during the annual audit. If the investment projects (hereinafter referred to as "fundraising projects") are implemented through the Company's subsidiaries or other controlled enterprises, the Company must ensure compliance with this fundraising management system.
Article 4
The Company's board of directors is responsible for establishing and improving the fundraising management system and ensuring its effective implementation. This system clearly stipulates the storage, management, usage, change of purpose, supervision, application for fund usage, approval authority, decision-making procedures, risk control measures, information disclosure procedures, and accountability related to the use of raised funds.
Article 5
The board of directors shall continuously monitor the storage, management, and usage of raised funds, effectively preventing investment risks and improving the efficiency of fund usage. The Company's directors and senior management must diligently ensure the safety of raised funds and must not manipulate the Company to change the usage of raised funds arbitrarily or in disguise.
Article 6
The use of raised funds must adhere to the principles of careful planning, meticulous budgeting, standardized operations, and transparency.
Article 7
If the use of raised funds violates national laws, regulations, or the Company's articles of association, resulting in losses to the Company, the responsible personnel shall bear civil liability.
Chapter 2 Storage of Special Accounts for Raised Funds
Article 8
The Company shall prudently select commercial banks and open special accounts for raised funds (hereinafter referred to as "special accounts"). The raised funds must be stored in special accounts approved by the board of directors for centralized management and usage, and special accounts must not hold non-raised funds or be used for other purposes. If the Company has more than two rounds of financing, separate special accounts for raised funds must be established. Excess funds must also be managed in the special accounts.