Emergency Event Management System

Zhejiang Youfu High-Tech Fiber Co., Ltd.

Emergency Event Management System

Chapter 1 General Provisions

Article 1 To strengthen the emergency management of Zhejiang Youfu High-Tech Fiber Co., Ltd. (hereinafter referred to as the "Company"), establish a rapid response and emergency handling mechanism, effectively reduce the impact and losses caused by emergencies, maintain the normal production and operation order of the Company, and protect the legitimate rights and interests of investors, in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Emergency Response Law of the People's Republic of China," and other relevant laws, regulations, business rules, and the Company's "Information Disclosure Management System," etc., and in combination with the Company's actual situation, this System is formulated.

Article 2 An emergency event as referred to in this System means a sudden, non-routine event that has already had or may have a serious impact on the Company's operations, financial situation, or reputation and stock price, and requires emergency response measures.

Article 3 The Company shall adhere to the principle of prevention first, and the combination of prevention and emergency response in dealing with emergency events.

Article 4 This System applies to the handling of emergency events encountered by the Company and its holding subsidiaries.

Chapter 2 Classification of Emergency Events

Article 5 Based on factors such as social harm and scope of impact, emergency events primarily include, but are not limited to:

(I) Governance Category

1. Major risks faced by the Company's major shareholders, causing significant impact on the Company;
2. Major disputes or litigation between major shareholders, or obvious differences;
3. Major disputes or litigation between the Company and shareholders or employees;
4. Company directors and senior management involved in major violations or even illegal activities;
5. Management losing control of the Company;
6. Company assets being transferred or concealed by major shareholders or related personnel, making them irrecoverable;
7. Other events.

(II) Operational Category

1. Deterioration of the Company's operating and financial conditions;
2. Risk of delisting faced by the Company;
3. Inability of the Company to continue operations due to major quality accidents or other reasons;
4. Risk of significant economic losses or civil compensation;

Chapter 3 Organizational Structure

Article 6 The Company shall implement unified leadership, unified organization, rapid response, and coordinated action in handling emergency events.

Article 7 The Company shall establish an Emergency Event Handling Leading Group (hereinafter referred to as the "Emergency Leading Group"), with the Chairman of the Company as the leader, the General Manager as the deputy leader, and members composed of other senior management personnel and heads of relevant functional departments of the Company.

Article 8 The Emergency Leading Group is the leading body for the Company's emergency event handling work, which shall unify the leadership of the Company's emergency event response, make decisions and arrangements on relevant major issues, and, as needed, research and decide on the Company's external release of event information. Its main responsibilities include:

1. Deciding to initiate and terminate the emergency event handling system;
2. Formulating emergency event handling plans;
3. Organizing and directing emergency event handling work;
4. Coordinating and organizing external publicity and reporting work during the handling of emergency risk events, and formulating unified external publicity and explanation guidelines;
5. Being responsible for maintaining effective contact and relations with relevant departments or government agencies;
6. Other matters in the process of handling emergency events.

Chapter 4 Early Warning and Prevention Mechanism

Article 9 The Company shall take preventive and control measures against factors that may trigger emergency events, and confirm emergency events based on the monitoring results of emergency events and the degree of pre-control of emergency events.