Zhejiang Shuangyuan Technology (SH:688623) Zheng Quan Zhi Xing·2025-08-25 16:23Core Viewpoint - The document outlines the management system established by Zhejiang Shuangyuan Technology Co., Ltd. to prevent the misuse of company funds by controlling shareholders, actual controllers, and other related parties, ensuring the protection of investors' rights and interests [2][4]. Group 1: Purpose and Scope - The system aims to regulate financial transactions between the company and its controlling shareholders, actual controllers, and related parties, creating a long-term mechanism to prevent fund misuse [2]. - The system applies to the company and its subsidiaries included in the consolidated financial statements regarding financial transactions with controlling shareholders and related parties [2]. Group 2: Definitions and Types of Fund Misuse - "Related parties" are defined according to relevant laws and regulations, including natural persons, legal entities, or other organizations [2]. - Fund misuse includes both operational and non-operational types, such as funds occupied through business transactions or unauthorized loans and payments for expenses [3]. Group 3: Prevention Measures - The company must strictly prevent fund misuse during operational transactions with controlling shareholders and related parties [4]. - The company is prohibited from providing funds directly or indirectly to controlling shareholders and related parties through various means, including covering expenses or unauthorized loans [4][5]. Group 4: Responsibilities and Oversight - The board of directors and senior management are legally responsible for safeguarding the company's funds and assets, with specific roles assigned to the chairman, board secretary, and financial director [6]. - The financial and internal audit departments are tasked with regularly checking for non-operational fund transactions to prevent misuse [5]. Group 5: Legal and Financial Accountability - In cases of asset infringement by controlling shareholders or related parties, the board must take effective measures to stop the infringement and seek compensation [6]. - Funds occupied by controlling shareholders or related parties should generally be repaid in cash, with strict controls on non-cash asset repayments [7]. Group 6: Compliance and Reporting - The company must develop a debt recovery plan in case of fund misuse and report to regulatory authorities as required [7]. - Independent auditors are required to provide special reports on any fund occupation by controlling shareholders or related parties during annual audits [8]. Group 7: Disciplinary Actions - The board may impose disciplinary actions on directors and senior management who facilitate or condone fund misuse, including potential dismissal for serious offenses [8]. - Economic penalties may be applied to responsible parties if non-operational fund misuse negatively impacts the company [8]. Group 8: Implementation and Interpretation - The system will take effect upon approval by the shareholders' meeting and will be interpreted by the board of directors [10].