Chapter 1 General Principles
Article 1
To standardize the management and utilization of funds raised by Suzhou Kede Education Technology Co., Ltd. (hereinafter referred to as "the Company"), improve the efficiency of fund usage, and protect the rights of investors, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Regulations on the Registration and Management of Securities Issuance by Listed Companies," "Regulations on the Supervision of Fundraising by Listed Companies" (hereinafter referred to as "the Supervision Regulations"), "Listing Rules for the Growth Enterprise Market of the Shenzhen Stock Exchange" (hereinafter referred to as "the GEM Listing Rules"), and "Self-Regulatory Guidelines No. 2 for Listed Companies on the Growth Enterprise Market" (hereinafter referred to as "Self-Regulatory Guidelines No. 2"), along with other relevant laws, regulations, and normative documents, combined with the actual situation of the Company.
Article 2
The term "raised funds" in this system refers to the funds raised by the Company through the issuance of stocks or other equity-like securities for specific purposes, excluding funds raised for the implementation of equity incentive plans.
Article 3
For investment projects funded by raised funds implemented through the Company's subsidiaries or other enterprises under its control, the Company shall ensure that such subsidiaries or controlled enterprises comply with this system. For projects invested overseas, the Company shall take effective measures to ensure the safety and proper use of the raised funds and disclose relevant specific measures and actual effects in the special report on the storage, management, and use of raised funds.
Article 4
The use of raised funds shall adhere to the principles of careful planning, standardized operations, and transparency. The raised funds shall be used exclusively for their intended purposes. The use of raised funds must comply with national industrial policies and relevant laws and regulations, practice sustainable development concepts, fulfill social responsibilities, and, in principle, should be used for the main business to enhance the Company's competitiveness and innovation capabilities.
Article 5
The Company's controlling shareholders, actual controllers, and other related parties shall not occupy the Company's raised funds or use the raised funds for projects to gain improper benefits. If the Company discovers that controlling shareholders, actual controllers, or other related parties have occupied the raised funds, it shall promptly demand their return and disclose the reasons for the occupation, its impact on the Company, the repayment rectification plan, and the progress of the rectification.
Article 6
The Company's board of directors shall continuously monitor the storage, management, and use of raised funds, effectively prevent investment risks, and improve the efficiency of raised fund usage. The Company's directors and senior management shall diligently ensure the safety of the Company's raised funds and shall not manipulate the Company to change the use of raised funds without authorization or in disguised forms.
Article 7
The Company's financial management department shall establish a ledger for the use of raised funds, detailing the expenditure of raised funds and the investment status of projects funded by raised funds. The Company's internal audit institution shall inspect the storage, management, and use of raised funds at least quarterly and report the inspection results to the audit committee in a timely manner. If the audit committee finds violations, significant risks, or that the internal audit institution has not submitted the inspection results report as required, it shall promptly report to the board of directors. The board of directors shall report to the Shenzhen Stock Exchange and announce the findings in a timely manner after receiving the report.