Chapter 1 General Principles
Article 1
To standardize the risk investment activities of Beijing Jinyi Cultural Development Co., Ltd. (hereinafter referred to as "the Company" or "this Company") and its controlling subsidiaries, establish a sound and orderly investment decision-making management mechanism, effectively prevent investment risks, ensure the safety of the Company's funds and assets, and protect the legal rights and interests of shareholders and the Company, this system is formulated in accordance with the "Securities Law of the People's Republic of China" (hereinafter referred to as "the Securities Law"), "Shenzhen Stock Exchange Stock Listing Rules" (hereinafter referred to as "the Listing Rules"), "Self-Regulatory Guidelines No. 1 for Listed Companies on the Main Board of Shenzhen Stock Exchange" (hereinafter referred to as "the Normative Operation"), and other relevant laws, regulations, normative documents, and the "Articles of Association of Beijing Jinyi Cultural Development Co., Ltd." (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
The term "risk investment" in this system includes investments in stocks and their derivatives, fund investments, futures investments, real estate investments by listed companies whose main business is not real estate, securities investment products based on the aforementioned investments, and other investment behaviors recognized by the Shenzhen Stock Exchange. The following situations are not applicable to the scope of risk investment regulations in this section:
- Investment behaviors aimed at expanding the production scale of the main business or extending the industrial chain;
- Purchasing investments with high safety, good liquidity, and meeting fixed income or capital preservation commitments;
- Participating in the rights issue of other listed companies or exercising preemptive subscription rights;
- Purchasing shares of other listed companies for strategic investment purposes, exceeding 10% of the total share capital, and intending to hold the securities for more than three years;
- Investments made before the Company's initial public offering and listing.
Article 3
The principles for the Company's risk investment are as follows:
- The Company's risk investments must comply with relevant national laws, regulations, and normative documents;
- The Company's risk investments should prevent investment risks, strengthen risk control, and reasonably assess benefits;
- The Company's risk investments must be compatible with the asset structure, moderate in scale, and within the Company's capacity, without affecting the normal operation of its main business.
Article 4
The source of funds for the Company's risk investments shall be the Company's own funds. The Company shall not use raised funds or other funds that do not comply with national laws and regulations and the relevant provisions of the China Securities Regulatory Commission and Shenzhen Stock Exchange to directly or indirectly conduct risk investments. The Company shall strictly control the scale of funds for risk investments, which must not affect the normal operation of the Company.
Article 5
The Company shall not conduct risk investments during the following periods:
- During the period when idle raised funds are temporarily used to supplement working capital;
- Within twelve months after changing the use of raised funds to permanently supplement working capital;
- Within twelve months after permanently using over-raised funds to supplement working capital or repay bank loans;
- During other periods recognized by the Shenzhen Stock Exchange.
Article 6
Within twelve months after conducting risk investmen