Chapter 1 General Principles
Article 1
To standardize the management and use of funds raised by China National Machinery Precision Engineering Group Co., Ltd. (hereinafter referred to as "the Company"), improve the efficiency of fund utilization, and protect investor interests, this management system is formulated in accordance with the "Regulations on the Supervision of Funds Raised by Listed Companies," "Self-Regulatory Guidelines No. 1 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations for Main Board Listed Companies (2025 Revision)," and other relevant laws, regulations, and normative documents, as well as the provisions of the "Articles of Association," combined with the actual situation of the Company.
Article 2
The funds referred to in this system are those raised by the Company through the issuance of stocks or other equity-like securities for specific purposes, excluding funds raised for implementing equity incentive plans.
Article 3
The funds raised by the Company shall be used exclusively for their intended purposes. The use of raised funds must comply with national industrial policies and relevant laws and regulations, embody the concept of sustainable development, fulfill social responsibilities, and, in principle, should be used for the main business to enhance the Company's competitiveness and innovation capabilities. The Company's board of directors is responsible for establishing and improving the management system for raised funds and ensuring its effective implementation.
Article 4
The Company's board of directors shall continuously monitor the storage, management, and usage of raised funds, effectively prevent investment risks, and improve the efficiency of fund utilization. The Company's directors and senior management personnel shall act diligently to ensure the safety of raised funds and shall not manipulate the Company to change the use of raised funds without authorization or in disguised forms.
Article 5
The Company shall prudently use raised funds to ensure that their use is consistent with the commitments made in the issuance application documents and shall not change the direction of raised funds without authorization. The Company shall disclose the actual use of raised funds truthfully, accurately, and completely. In the event of significant circumstances affecting the normal progress of the investment plan for raised funds, timely announcements shall be made. If the investment projects of raised funds are implemented through the Company's subsidiaries or other controlled enterprises, the Company shall ensure that such subsidiaries or controlled enterprises comply with all provisions of this system. For overseas investment projects, the Company and the sponsor shall take effective measures to ensure the safety and proper use of raised funds invested abroad and disclose relevant specific measures and actual effects in the special report on the storage, management, and use of raised funds.
Article 6
The Company's controlling shareholders, actual controllers, and other related parties shall not occupy the Company's raised funds or use the Company's raised funds to invest in projects for improper benefits.
Chapter 2 Special Accounts for Raised Funds
Article 7
The Company shall prudently select commercial banks and open special accounts for raised funds (hereinafter referred to as "special accounts"). Raised funds shall be stored in special accounts established with the approval of the board of directors for centralized management and use, and special accounts shall not hold non-raised funds or be used for other purposes. If the Company has more than two financings, separate special accounts for raised funds shall be set up.