Chapter 1 General Principles
Article 1
To standardize the securities investment and derivative trading activities of Shenzhen Boshuo Technology Co., Ltd. (hereinafter referred to as "the Company"), prevent investment risks, strengthen risk control, and protect the interests of the Company and its shareholders, this system is formulated in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Shenzhen Stock Exchange GEM Listing Rules, the Shenzhen Stock Exchange Self-Regulatory Guidelines No. 2 for GEM Listed Companies, the Shenzhen Stock Exchange Self-Regulatory Guidelines No. 7 for Transactions and Related Transactions, and other relevant laws, regulations, normative documents, and provisions of the Articles of Association, combined with the actual situation of the Company.
Article 2
This system applies to the Company's securities investment and derivative trading activities.
- The securities investment referred to in this system includes new stock allocations or subscriptions, securities repurchases, investments in stocks and depositary receipts, bond investments, and other investment activities recognized by the Shenzhen Stock Exchange.
- The derivative trading referred to in this system refers to trading activities involving swap contracts, forward contracts, and non-standard options contracts and their combinations, excluding futures trading. The underlying assets of derivatives can include securities, indices, interest rates, exchange rates, currencies, commodities, etc., or combinations of the above.
Article 3
The following situations are not subject to the regulations of this system regarding securities investment and derivative trading:
- Securities investment activities that are the main business of the Company or its controlling subsidiaries.
- Fixed-income or capital-preserving investment activities.
- Participation in the allotment of shares of other listed companies or exercising preemptive rights.
- Securities investment activities involving the purchase of shares of other listed companies exceeding 10% of the total share capital, with a plan to hold for more than three years.
- Investments made before the Company's initial public offering and listing.
Article 4
The principles for the Company's securities investment and derivative trading are as follows:
- The Company must comply with national laws, regulations, and normative documents when conducting securities investment and derivative trading.
- The Company should adhere to the principles of legality, prudence, safety, and effectiveness, control investment risks, focus on investment benefits, and determine the scale and duration of investments based on its risk tolerance.
- The Company's securities investment and derivative trading must align with its business and asset structure, be moderate in scale, and not affect the normal operation of the Company's main business.
- The Company’s hedging activities in futures trading are limited to products, raw materials, and foreign exchange related to its production and operations.
Article 5
The funding source for the Company's securities investment and derivative trading is the Company's own funds. It is prohibited to use raised funds directly or indirectly for securities investment and derivative trading.
Article 6
Within twelve months after using raised funds to permanently supplement working capital, the Company shall not co-invest with professional investment institutions.
Article 7
This system applies to the Company and its subsidiaries (including controlling subsidiaries) for securities investment and derivative trading. Subsidiaries shall not engage in securities investment and derivative trading without the Company's approval.