Chapter 1 General Principles
Article 1
To strengthen the management of shares held by directors and senior management of Shanghai Weihong Electronic Technology Co., Ltd. (hereinafter referred to as "the Company"), and to maintain the order of the securities market, 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 Securities Law of the People's Republic of China (hereinafter referred to as "the Securities Law"), the Management Rules for Shares Held by Directors and Senior Management of Listed Companies, the Listing Rules for the Growth Enterprise Market of the Shenzhen Stock Exchange, the Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operation of Growth Enterprise Market Listed Companies, the Self-Regulatory Guidelines No. 10 for Listed Companies on the Shenzhen Stock Exchange - Share Change Management, and other relevant laws, regulations, and normative documents, as well as the provisions of the Articles of Association of Shanghai Weihong Electronic Technology Co., Ltd. (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
This system applies to the directors and senior management of the Company. Shares held by them refer to all shares of the Company registered in their names and held through others' accounts; for those engaged in margin trading, it also includes shares recorded in their credit accounts.
Article 3
Before buying or selling the Company's stocks and their derivatives, the Company's directors and senior management shall be aware of the prohibitions against insider trading, market manipulation, and other illegal activities as stipulated in the Company Law, Securities Law, and other relevant laws and regulations, and shall not engage in illegal or non-compliant transactions.
Chapter 2 Prohibited Trading Activities
Article 4
Shares held by the Company's directors and senior management shall not be transferred under any of the following circumstances:
- Within one year from the date of the Company's stock listing;
- Within six months after resignation;
- If the Company is under investigation by the China Securities Regulatory Commission (CSRC) or judicial authorities for suspected violations of securities and futures laws, or if administrative penalties or criminal sentences have not been completed for less than six months;
- If the individual is under investigation by the CSRC or judicial authorities for suspected violations related to the Company, or if administrative penalties or criminal sentences have not been completed for less than six months;
- If the individual has been administratively punished by the CSRC for involvement in securities and futures violations and has not fully paid the fines, unless otherwise stipulated by laws or regulations or if the funds from the reduction are used to pay the fines;
- If the individual has been publicly reprimanded by the stock exchange for violations related to the Company for less than three months;
- If the Company may face significant illegal circumstances leading to mandatory delisting, from the date of the relevant administrative penalty notice or judicial ruling until one of the following occurs:
- The Company's stock is delisted;
- The Company receives a relevant administrative penalty decision or a valid judicial ruling indicating that the Company has not faced significant illegal circumstances leading to mandatory delisting.
- Other circumstances as stipulated by laws, regulations, the CSRC, and the stock exchange, as well as the Articles of Association.