Chapter 1 General Principles
Article 1
To further improve the operational standards of Kairuide Holdings Co., Ltd. (hereinafter referred to as "the Company"), increase accountability for annual report information disclosure, enhance the quality and transparency of disclosures, and strengthen the authenticity, accuracy, completeness, and timeliness of annual report information, this system is formulated 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 for Listed Companies," "Shenzhen Stock Exchange Listing Rules," and relevant provisions of 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, and strictly adhere to the internal control systems related to financial reporting to ensure that financial reports truly 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
Company directors, 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 during the annual report information disclosure process, fail to perform their duties diligently, or do not fulfill their responsibilities, resulting in significant errors in annual report information disclosure, shall be held accountable according to the provisions of this system.
Article 4
The significant errors in annual report information disclosure referred to in this system are defined as errors in annual report disclosures caused by relevant personnel's failure to perform or incorrectly perform their duties or obligations, or other personal reasons, leading to significant economic losses or adverse social impacts on the Company. This includes but is not limited to:
- Annual financial reports that violate 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 that violate the "Enterprise Accounting Standards" and related interpretations, as well as the "General Provisions on Financial Reporting" (Revised 2010) issued by the China Securities Regulatory Commission, containing significant errors or omissions;
- Other content and format of annual report disclosures that do not comply with the "Content and Format Standards for Information Disclosure by Companies Issuing Securities" No. 2—Annual Report, 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 situations identified by regulatory authorities as significant errors in annual report information disclosure.
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 investigation of errors;
- Equivalence of power and responsibility, correspondence of fault and responsibility;
- Combining accountability with work improvement.