Chapter 1 General Principles
Article 1
To standardize the management and use of funds raised by Yantai Zhenghai Biotechnology Co., Ltd. (hereinafter referred to as the "Company") and to maximize the protection of investors' interests, this system is formulated in accordance with the relevant laws and regulations, including the Company Law, Securities Law, and the Shenzhen Stock Exchange's rules.
Article 2
The funds referred to in this system are those raised by the Company through the issuance of stocks or other equity-like securities for specific purposes, excluding funds raised for equity incentive plans.
Article 3
The funds raised by the Company must be used exclusively for their intended purposes, in compliance with national industrial policies and relevant laws and regulations, promoting sustainable development and fulfilling social responsibilities. In principle, these funds should be used for the main business to enhance the Company's competitiveness and innovation capabilities. The Company must disclose the actual use of the raised funds truthfully, accurately, and completely, and engage an accounting firm to verify the storage and use of the funds during the annual audit.
Article 4
The Company's board of directors must continuously monitor the storage, management, and use of the raised funds, effectively preventing investment risks and improving the efficiency of fund usage. The board is also responsible for establishing and ensuring the effective implementation of the fundraising management system, which should clearly define the storage, management, use, changes in purpose, supervision, and accountability of the raised funds.
Article 5
The Company's controlling shareholders, actual controllers, and other related parties must not occupy the Company's raised funds or use them to invest in projects for improper benefits. If the Company discovers that controlling shareholders, actual controllers, or other related parties have occupied the raised funds, it must promptly demand their return and disclose the reasons for the occupation, its impact on the Company, the repayment plan, and the progress of rectification.
Article 6
The Company's directors and senior management must act diligently to ensure the safety of the funds raised by the listed company and must not manipulate the company to change the use of the raised funds without authorization or in disguise.
Article 7
During the continuous supervision period, the sponsor institution must fulfill its sponsorship responsibilities regarding the management of the Company's raised funds, in accordance with the relevant regulations.
Chapter 2 Storage of Special Accounts for Raised Funds
Article 8
The Company must prudently select commercial banks and open special accounts for the raised funds (hereinafter referred to as "special accounts"). The raised funds must be stored in special accounts approved by the board for centralized management, and these accounts must not hold non-raised funds or be used for other purposes. If the Company has more than two financings, separate special accounts must be set up for each. Any net amount of raised funds exceeding the planned amount (hereinafter referred to as "excess funds") must also be managed in the special accounts.