Chapter 1 General Principles
Article 1
To standardize the management of entrusted financial management business at Yunnan Energy Investment Co., Ltd. (hereinafter referred to as "the Company"), effectively control risks, enhance investment returns, and protect the interests of the Company and its shareholders, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange Stock Listing Rules," "Self-Regulatory Guidelines No. 1 for Listed Companies on the Main Board of Shenzhen Stock Exchange" (hereinafter referred to as "the Guidelines"), and other relevant laws, regulations, normative documents, and the provisions of the "Articles of Association of Yunnan Energy Investment Co., Ltd." (hereinafter referred to as "the Articles of Association").
Article 2
Entrusted financial management refers to the act of the Company, under the premise of controlling investment risks, entrusting financial institutions such as commercial banks, trust companies, asset management companies, securities companies, fund companies, and insurance companies to conduct low-risk investment management, with the aim of improving capital utilization efficiency and increasing cash asset returns. This includes bank wealth management products, trust plans from trust companies, asset management plans from asset management companies, and fixed-income products from securities companies, fund companies, and insurance companies. The investment varieties of entrusted financial management do not include new stock allocations or subscriptions, securities repurchase, stock and depositary receipt investments, bond investments, and derivative trading, among other related high-risk investment products. When entrusted financial management involves high-risk investments, it shall be executed in accordance with the Company's "Risk Investment Management System."
Article 3
This system applies to the Company and its wholly-owned, controlled, or actually controlled subsidiaries (hereinafter referred to as "affiliated companies").
Chapter 2 Principles of Entrusted Financial Management
Article 4
The Company shall adhere to the principles of "standardized operation, risk prevention, cautious investment, and value preservation and appreciation" in conducting entrusted financial management, with the prerequisite that it does not affect the normal operation and development of the Company's main business.
Article 5
The funds for entrusted financial management shall be the Company's own idle funds and idle raised funds authorized for use by the shareholders' meeting and the board of directors, and their use shall not affect the Company's normal production and operational activities and investment needs.
Article 6
When conducting entrusted financial management, the Company shall strictly follow the decision-making procedures, reporting systems, and risk monitoring measures stipulated in this system, and determine the investment scale based on the Company's risk tolerance.
Article 7
The Company shall generally only engage in entrusted financial management activities with a duration of no more than 3 months. For flexible term cash management using idle own funds, the management period shall not exceed 12 months.