Chapter 1 General Principles
Article 1
To further improve the operational standards of Kairuide Holdings Co., Ltd. (hereinafter referred to as "the Company"), enhance accountability for annual report information disclosure, and improve the quality and transparency of disclosures, this system is established in accordance with the "Securities Law of the People's Republic of China," "Accounting Law of the People's Republic of China," "Regulations on the Management of Information Disclosure by Listed Companies," "Corporate Governance Standards," "Shenzhen Stock Exchange Listing Rules," and other relevant laws, regulations, and normative documents, as well as the Company's Articles of Association, 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 accurately 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
Directors, supervisors, senior management, and other personnel related to annual report information disclosure who violate national laws, regulations, normative documents, or the Company's rules and regulations, fail to perform their duties diligently, or neglect their responsibilities, resulting in significant errors in annual report information disclosure, shall be held accountable according to this system.
Article 4
Significant errors in annual report information disclosure refer to errors caused by relevant personnel's failure to perform or improperly perform their duties or obligations, or other personal reasons, leading to substantial economic losses or adverse social impacts on the Company. This includes but is not limited to:
- Annual financial reports violating the "Accounting Law of the People's Republic of China," "Enterprise Accounting Standards," and related regulations, containing significant accounting errors;
- Financial information disclosures in the notes to the financial statements violating "Enterprise Accounting Standards" and related interpretations, as well as the China Securities Regulatory Commission's "Rules for the Disclosure of Information by Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports (Revised 2010)," containing significant errors or omissions;
- Other content and format of annual report information disclosures not complying with the China Securities Regulatory Commission's "Guidelines for the Content and Format of Annual Reports No. 2" and other regulations, normative documents, and the Company's Articles of Association, containing significant errors or omissions;
- Significant discrepancies between performance forecasts and actual disclosed performance in the annual report without reasonable explanations;
- Significant discrepancies between financial data and indicators in performance bulletins and actual data and indicators in related periodic reports without reasonable explanations;
- Other significant errors in annual report information disclosure 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 errors;
- Equivalence of power and responsibility, and correspondence of fault and responsibility;
- Combining accountability with work improvement.