HUALU-HENGSHENG(SH:600426) Zheng Quan Zhi Xing·2025-09-05 16:22Core Viewpoint - The document outlines the measures and principles established by Shandong Hualu Hengsheng Chemical Co., Ltd. to prevent the misuse of company funds by controlling shareholders and related parties, ensuring the protection of investors' rights and interests [1][2]. Group 1: General Principles - The system aims to regulate financial transactions between the company and its controlling shareholders or related parties, establishing a long-term mechanism to prevent fund misuse [1]. - The system applies to the company and its subsidiaries included in the consolidated financial statements [1]. Group 2: Types of Fund Misuse - Fund misuse includes operational fund occupation through related transactions such as procurement and sales, as well as non-operational fund occupation for expenses like wages and advertising [2]. - Non-operational fund occupation also covers direct or indirect loans to related parties without genuine transaction backgrounds [2]. Group 3: Prevention Principles - The company must prevent any direct or indirect occupation of funds, assets, and resources by controlling shareholders and related parties [2]. - Related transactions must comply with relevant regulations and be settled promptly to avoid non-operational fund occupation [2]. Group 4: Responsibilities of Management - The chairman of the board is the primary responsible person for preventing fund occupation, while the general manager and financial officer share secondary responsibilities [3]. - The financial department is tasked with regular inspections of fund transactions with related parties, while the audit department supervises compliance with internal controls [3]. Group 5: Measures for Fund Recovery - In cases of asset occupation by controlling shareholders, the board must take effective measures to stop the infringement and seek compensation [4]. - If fund occupation occurs, the company can apply for judicial freezing of shares held by the controlling shareholder upon approval from independent directors [4]. Group 6: Accountability and Penalties - Directors and senior management who assist or condone fund occupation will face disciplinary actions, and the company can seek compensation for losses incurred [8]. - Violations of the system will result in penalties for responsible individuals, and the company retains the right to pursue legal accountability [8].