Chapter 1 General Principles
Article 1
In accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange GEM Listing Rules," "Hong Kong Stock Exchange Listing Rules" (hereinafter referred to as "Hong Kong Listing Rules"), and other relevant laws, regulations, normative documents, and the provisions of the Articles of Association of Shenzhen Boke New Materials Co., Ltd. (hereinafter referred to as "the Company"), this system is formulated to prevent major shareholders, actual controllers, and other related parties from occupying company funds, further protecting the legitimate rights and interests of all shareholders and creditors, and establishing a long-term mechanism to prevent such fund occupation.
Article 2
The Company's directors and senior management have a legal obligation to maintain the security of company funds.
Article 3
The term "fund occupation" as used in this system includes but is not limited to: operational fund occupation and non-operational fund occupation. Operational fund occupation refers to fund occupation arising from related transactions in procurement, sales, and other production and operational activities by major shareholders and other related parties; non-operational fund occupation refers to funds advanced by major shareholders and other related parties for wages, benefits, insurance, advertising, and other expenses, as well as funds directly or indirectly lent to major shareholders and other related parties, whether for compensation or not, and debts incurred from guarantees provided for major shareholders and other related parties, as well as other funds used by major shareholders and other related parties without the provision of goods and services.
Article 4
Subsidiaries included in the Company's consolidated financial statements are subject to this system, and fund transactions between major shareholders and related parties and subsidiaries included in the consolidated financial statements shall be executed in accordance with this system.
Chapter 2 Principles for Preventing Fund Occupation by Major Shareholders and Other Related Parties
Article 5
In operational fund transactions between the Company and major shareholders and other related parties, the occupation of company funds must be strictly limited. The Company shall not provide funds, assets, and resources directly or indirectly to major shareholders and other related parties through the advance of wages, benefits, insurance, advertising, or other period expenses, nor shall it bear costs and other expenses on behalf of each other.