Explanation of the Establishment, Improvement, and Operation of the Systems for Shareholders' Meetings, Board of Directors, Supervisory Board, Independent Directors, and Board Secretary
To the Shenzhen Stock Exchange:
Shenzhen Shangshui Intelligent Co., Ltd. (hereinafter referred to as the "Company") is applying for its initial public offering of shares on the ChiNext market. In accordance with the "Administrative Measures for the Registration of Initial Public Offerings of Shares," the "Content and Format Standards for Information Disclosure by Companies Issuing Securities No. 58 - Application Documents for Initial Public Offering and Listing," and other relevant regulations, the establishment, improvement, and operation of the systems for shareholders' meetings, board of directors, supervisory board, independent directors, and board secretary are hereby explained as follows:
(I) Establishment, Improvement, and Operation of the Shareholders' Meeting System
In accordance with the "Company Law" and the "Articles of Association," the Company has formulated the "Rules of Procedure for Shareholders' Meetings." The Company's shareholders' meetings strictly exercise their functions and powers in accordance with relevant laws, regulations, the "Articles of Association," and the "Rules of Procedure for Shareholders' Meetings."
Since the Company's overall transformation and establishment, shareholders have diligently fulfilled their obligations and exercised their rights in accordance with the law. The procedures for convening and holding the Company's shareholders' meetings, the voting procedures, and the content of resolutions all comply with the provisions of the "Company Law" and other relevant laws and regulations, as well as the "Articles of Association" and the "Rules of Procedure for Shareholders' Meetings." The shareholders' meetings operate in a standardized manner. As of the date of signing this Prospectus, the Company has held 13 shareholders' meetings to make decisions on relevant matters of the Company.
(II) Establishment, Improvement, and Operation of the Board of Directors System
- Composition of the Board of Directors
The Company's Board of Directors consists of 9 directors, including 3 independent directors. The Board of Directors has one Chairman. Directors are elected and removed by the shareholders' meeting, and their term of office is three years. Directors may be re-elected upon the expiration of their term.
- Operation of the Board of Directors System