Chapter 1 General Principles
Article 1
To strengthen the management of shares held by directors and senior management of China National Machinery Precision Engineering Group Co., Ltd. (hereinafter referred to as "the Company") and their changes, this system is formulated in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as "the Company Law"), "Securities Law of the People's Republic of China" (hereinafter referred to as "the Securities Law"), "Rules on the Management of Shares Held by Directors and Senior Management of Listed Companies and Their Changes," "Self-Regulatory Guidelines No. 10 for Listed Companies on the Shenzhen Stock Exchange—Share Change Management," "Self-Regulatory Guidelines No. 18 for Listed Companies on the Shenzhen Stock Exchange—Shareholders and Directors, Senior Management's Reduction of Shares," and other relevant laws, administrative regulations, departmental rules, normative documents, and the Company's articles of association.
Article 2
This system applies to the management of shares held by the Company's directors and senior management and their changes.
Article 3
Before buying or selling the Company's stocks and their derivatives, the Company's directors and senior management shall be aware of the prohibitions against insider trading, market manipulation, and other illegal activities as stipulated in the Company Law, Securities Law, and other laws and regulations, and shall not engage in illegal transactions.
Article 4
The shares held by the Company's directors and senior management refer to all shares of the Company registered in their names and those held in others' accounts. If the directors and senior management engage in margin trading, it also includes shares recorded in their margin accounts.
Chapter 2 Information Reporting
Article 5
The Company’s board secretary is responsible for managing the data of the Company’s directors and senior management regarding their identities and shares held, uniformly handling online reporting of personal information for these individuals, and checking the disclosure of stock trading by directors and senior management quarterly. Any violations should be reported promptly to the China Securities Regulatory Commission (hereinafter referred to as "CSRC") and the Shenzhen Stock Exchange (hereinafter referred to as "SZSE").
Article 6
The Company’s directors and senior management shall entrust the Company to report their name, position, ID number, securities account, and resignation time to the SZSE and the Shenzhen branch of China Securities Depository and Clearing Corporation Limited (hereinafter referred to as "China Clearing Shenzhen Branch") within the following time frames:
- Within two trading days after the shareholders' meeting (or employee representative meeting) approves the appointment of new directors, or within two trading days after the board approves the appointment of new senior management;
- Within two trading days after any changes in the previously reported personal information of current directors and senior management;
- Within two trading days after resignation;
- Other times as required by the SZSE.
The above reporting data is considered an application for the management of their shares held by the relevant personnel according to regulations.
Article 7
The Company and its directors and senior management shall ensure that the reported data to the SZSE and China Clearing Shenzhen Branch is true, accurate, timely, and complete, and agree to the SZSE's timely publication of the trading situation of relevant personnel's shares and their derivatives, bearing the legal responsibilities arising therefrom.
Chapter 3 Share Lock-up
Article 8
After the Company’s directors and senior management entrust the Company to report personal information, the China Clearing Shenzhen Branch shall lock the shares registered in the securities accounts opened under their ID numbers based on the reported data.