Management Measures for External Investment
Chapter 1 General Provisions
Article 1 These Measures are formulated to regulate the external investment activities of Luxshare Precision Industry Co., Ltd. (hereinafter referred to as the "Company"), enhance investment efficiency, and mitigate investment risks, in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Shenzhen Stock Exchange Stock Listing Rules," and other national laws and regulations, combined with the "Articles of Association of Luxshare Precision Industry Co., Ltd." (hereinafter referred to as the "Articles of Association") and other company systems.
Article 2 For the purposes of these Measures, external investment refers to the activities of the Company in making various forms of investments by using a certain amount of monetary capital, equity, tangible assets, intangible assets, or other assets that can be used as capital contributions according to laws, regulations, and normative documents, in order to obtain future returns.
Article 3 Based on the investment term, the Company's external investments are divided into short-term investments and long-term investments.
Short-term investments mainly refer to investments that the Company purchases and can be realized at any time, with a holding period not exceeding one year (inclusive). This includes various stocks, bonds, funds, etc.
Long-term investments mainly refer to investments that the Company makes for a period exceeding one year, which cannot be realized at any time or are not intended to be realized. This includes bond investments, equity investments, and other investments. It includes, but is not limited to, the following types:
- Enterprises established independently by the Company or business projects funded independently by the Company;
- Joint ventures, cooperative companies, or development projects established by the Company with other domestic and foreign independent legal entities or natural persons;
- Minority stakes in other domestic or foreign independent legal entities.
Article 4 Investment management shall adhere to the following basic principles: conform to the Company's development strategy, rationally allocate enterprise resources, promote the optimized combination of factors, and create good economic benefits.
Chapter 2 Approval Authority for External Investment
Article 5 The Company's external investments shall be subject to professional management and a hierarchical approval system.
Article 6 The approval of the Company's external investments shall strictly follow the approval procedures stipulated by the "Company Law," the securities regulatory rules of the stock listing place of the Company, and other relevant laws, regulations, and the Articles of Association, the "Rules of Procedure for Shareholders' Meetings of Luxshare Precision Industry Co., Ltd.," the "Rules of Procedure for Board of Directors' Meetings of Luxshare Precision Industry Co., Ltd.," and the "General Manager's Working Rules of Luxshare Precision Industry Co., Ltd."
Chapter 3 Organizational and Management Structure for External Investment
Article 7 The Company's Shareholders' Meeting, Board of Directors, and General Manager are the decision-making bodies for the Company's external investments, and each shall make decisions within its scope of authority. No other department or individual has the right to make decisions on external investments.
Article 8 The Company shall establish an Investment Review Committee, headed by the General Manager, to make decisions and manage and supervise the Company's external investments.
Article 9 The Company's Investment Management Department is the management department for the Company's external investments. The Investment Management Department is responsible for the preliminary selection, planning, and preparation of feasibility studies for investment projects such as equity investments, property rights transactions, company asset restructuring, and capital operations.