Chapter 1 General Principles
Article 1
In order to further improve the standardized operation level of Zhejiang Kane Special Materials Co., Ltd. (hereinafter referred to as "the Company"), increase accountability for annual report information disclosure, enhance the quality and transparency of annual report disclosures, and strengthen the authenticity, accuracy, completeness, and timeliness of annual report information, this system is formulated based on the "Securities Law of the People's Republic of China," "Accounting Law of the People's Republic of China," "Management Measures for Information Disclosure of Listed Companies," "Corporate Governance Guidelines for Listed Companies," and "Shenzhen Stock Exchange Listing Rules," as well as relevant provisions of the Company's Articles of Association and the Company's Information Disclosure Management System, combined with the actual situation of the Company.
Article 2
Relevant personnel of the Company shall strictly implement the "Enterprise Accounting Standards" and related regulations, adhere to the internal control systems related to financial reporting, and ensure that financial reports truly and fairly reflect the Company's financial status, operating results, and cash flows. Relevant personnel shall not interfere with or obstruct the independent and objective auditing work of audit institutions and related certified public accountants.
Article 3
If the Company's directors, senior management, and other personnel related to annual report information disclosure violate national laws and regulations, normative documents, or the Company's rules and regulations during the annual report information disclosure process, fail to perform their duties diligently, or cause significant errors in annual report disclosures, they shall be held accountable according to the provisions of this system.
Article 4
Significant errors in annual report information disclosure refer to major accounting errors in the annual financial report, significant errors or omissions in other annual report disclosures, and significant discrepancies in performance forecasts or performance bulletins. Specific situations include:
- Major accounting errors in the annual financial report that violate the "Accounting Law of the People's Republic of China," "Enterprise Accounting Standards," and related regulations;
- Significant errors or omissions in the disclosure of financial information in the notes to the financial statements that violate the requirements of the "General Provisions on Financial Reporting" as per the China Securities Regulatory Commission (CSRC) rules;
- Other significant errors or omissions in the content and format of annual report disclosures that do not comply with the CSRC's "Content and Format Standards for Annual Reports" and other relevant regulations;
- Significant discrepancies between performance forecasts and actual disclosed performance without reasonable explanation;
- Significant discrepancies in financial data and indicators in performance bulletins compared to actual data in related periodic reports without reasonable explanation;
- Other significant errors in annual report disclosures as determined by regulatory authorities.
Article 5
In the event of significant errors in annual report information disclosure, the Company shall hold relevant responsible persons accountable. The following principles shall be followed in implementing accountability:
- Objective, fair, and fact-based principles;
- Accountability for responsibility and investigation of errors;
- Correspondence between power and responsibility, and between fault and accountability;
- Combining accountability with work improvement.