Article 1
To strengthen the management of shares held by directors and senior management of Huafu Fashion Co., Ltd. (hereinafter referred to as "the Company") and their changes, and to maintain the order of the securities market, these measures are formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Management Rules for Shares Held by Directors and Senior Management of Listed Companies and Their Changes," "Shenzhen Stock Exchange Listing Rules," "Self-Regulatory Guidelines No. 1 for Main Board Listed Companies," "Self-Regulatory Guidelines No. 10 for Listed Companies on Share Changes," and other laws, administrative regulations, normative documents, and the provisions of the "Articles of Association of Huafu Fashion Co., Ltd." (hereinafter referred to as "the Articles of Association").
Article 2
The Company’s directors, senior management, and other relevant parties shall comply with the restrictive provisions regarding share changes in laws, regulations, and relevant provisions of the Shenzhen Stock Exchange. If directors and senior management make commitments regarding the proportion of shares held, holding period, method of change, and change price, they must strictly fulfill these commitments.
Article 3
Shares held by the Company’s directors and senior management refer to all shares of the Company registered in their names and held through others' accounts. Directors and senior management of the Company shall not engage in margin trading or securities lending transactions involving the Company's stock.
Article 4
In cases such as the Company issuing shares or implementing an equity incentive plan, if there are additional restrictive conditions on the transfer price, performance assessment conditions, or lock-up periods for the shares held by directors and senior management, the Company shall apply to the Shenzhen Stock Exchange when handling share change registration, and the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited shall register the relevant personnel's shares as shares with limited sale conditions.
Article 5
Shares held by the Company’s directors and senior management shall not be transferred under any of the following circumstances: (1) within one year from the date of the Company's stock listing; (2) within six months after resignation; (3) if the Company is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of securities and futures laws or is subject to administrative penalties or criminal sentences that have not been completed for less than six months; (4) if the individual is under investigation by the CSRC or judicial authorities for suspected violations related to the Company; (5) if the individual has been administratively penalized by the CSRC for securities and futures violations and has not fully paid the fines, unless otherwise provided by laws or regulations; (6) if the individual has been publicly reprimanded by the stock exchange for violations related to the Company within three months; (7) if the Company may face significant violations leading to mandatory delisting during the restriction period set by the stock exchange; (8) other circumstances as stipulated by laws, regulations, the CSRC, Shenzhen Stock Exchange rules, and the Articles of Association.