Zhejiang Zhenai Home Co., Ltd. External Investment Management System
Chapter 1 General Provisions
Article 1 To strengthen the management of Zhejiang Zhenai Home Co., Ltd.'s (hereinafter referred to as the "Company") external investments, standardize the Company's external investment activities, improve fund operation efficiency, and ensure the preservation and appreciation of the Company's external investments, this system is formulated 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 relevant laws, regulations, normative documents, and the "Articles of Association of Zhejiang Zhenai Home Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in conjunction with the Company's specific circumstances.
Article 2 External investment as referred to in this system means investment activities carried out by the Company externally, namely, the Company's contribution of monetary capital and physical assets such as houses, machinery, equipment, and materials after asset appraisal, as well as intangible assets such as patent rights, technical know-how, trademark rights, and land use rights, to carry out investment activities in various forms.
Article 3 The purpose of establishing this system is to establish an effective management mechanism to promote efficiency and control risks in the Company's organizational resources, assets, and investment operations, ensure the profitability and safety of fund operations, and enhance the Company's profitability and risk resistance capabilities.
Article 4 Principles of External Investment: (1) Must comply with the provisions of national laws and regulations. (2) Must be in line with the Company's development strategy. (3) Must be of appropriate scale, within the Company's capabilities, and must not affect the development of the Company's main business. (4) Must adhere to the principle of prioritizing efficiency.
Chapter 2 Approval Authority for External Investment
Article 5 The approval of the Company's external investments shall strictly follow the approval procedures stipulated by the "Company Law," relevant national laws, regulations, the "Articles of Association," the "Company Shareholders' Meeting Rules of Procedure," and the "Company Board of Directors' Meeting Rules of Procedure." The approval authority of the Board of Directors shall not exceed the authorization of the Shareholders' Meeting; matters exceeding the Board of Directors' approval authority shall be submitted to the Shareholders' Meeting for approval.