Chapter 1 General Principles
Article 1
To standardize the management and use of funds raised by Zhuhai Yingboer Electric Co., Ltd. (hereinafter referred to as "the Company"), improve the efficiency of fund usage, and protect the legitimate rights and interests of all shareholders, this system is formulated based on the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Regulations on the Supervision of Fundraising by Listed Companies," "Administrative Measures for the Registration of Securities Issuance by Listed Companies," "Listing Rules for the Growth Enterprise Market of the Shenzhen Stock Exchange" (hereinafter referred to as "Listing Rules"), "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies," and other relevant laws, regulations, normative documents, and the "Articles of Association of Zhuhai Yingboer Electric Co., Ltd." (hereinafter referred to as "the Articles of Association"), 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 the equity incentive plan; "excess funds" refers to the portion of the net amount of actual raised funds that exceeds the planned amount.
Article 3
The Company’s raised funds shall be used exclusively for their intended purpose. The use of raised funds must comply with national industrial policies and relevant laws and regulations, adhere to the concept of sustainable development, and fulfill social responsibilities. In principle, funds should be used for the main business to enhance the Company's competitiveness and innovation capabilities. The Company shall establish and improve internal control systems for the storage, management, use, change of purpose, supervision, and accountability of raised funds, clarifying the hierarchical approval authority, decision-making procedures, risk control measures, and information disclosure requirements for the use of raised funds.
Article 4
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 fund usage. The Company’s directors and senior management shall act diligently to ensure the safety of raised funds and shall not manipulate or change the purpose of raised funds without authorization.
Article 5
The Company’s finance department shall establish a ledger for the use of raised funds, detailing the expenditure and investment in projects funded by the raised funds. The internal audit department 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.
Article 6
If the audit committee believes that there are violations, significant risks, or that the internal audit department has not submitted the inspection 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.
Chapter 2 Storage of Raised Funds
Article 7
To facilitate the management, use, and supervision of raised funds, the Company implements a special account storage system for raised funds.
Article 8
The Company shall prudently select commercial banks and open special accounts for raised funds (hereinafter referred to as "special accounts"). Raised funds shall be stored in a timely and complete manner in the special accounts approved by the board of directors for centralized management. Special accounts shall not store non-raised funds or be used for other purposes. If the Company has more than two financing instances, it shall independently set up special accounts for raised funds. Excess funds shall also be managed in the special accounts.