Core Viewpoint - The company has established a management system for entrusted financial management to enhance fund operation efficiency, effectively control investment risks, and safeguard company assets and shareholder rights [2][3]. Group 1: General Principles - The entrusted financial management refers to the company's delegation of financial institutions to invest and manage its assets, aiming to utilize idle funds within the scope of national policies while controlling investment risks [2]. - This system applies to the company and its wholly-owned and controlling subsidiaries, with centralized management of entrusted financial activities [2]. Group 2: Approval Authority and Decision-Making Procedures - The company must adhere to principles such as standardized operations, risk prevention, cautious investment, and asset preservation when engaging in entrusted financial management [3]. - If the entrusted financial management amount exceeds 10% of the latest audited net assets and is over 10 million, it requires board approval; amounts exceeding 50% and 50 million need shareholder meeting approval [3][4]. Group 3: Implementation and Management - The board must ensure that the approval authority for entrusted financial management is not delegated to individuals, and the company must select qualified financial institutions with good credit and financial status as trustees [5][6]. - The finance department is responsible for tracking the investment safety and progress, reporting any anomalies to the board for timely action [6][7]. Group 4: Information Disclosure - The company must disclose entrusted financial management matters that meet disclosure standards, including purpose, amount, method, and risk analysis [9][10]. - Any significant changes or risks related to the entrusted financial products must be disclosed promptly to protect the company's interests [9][10].

Core Points - The company establishes a system for entrusted financial management to ensure the safety of funds and assets, prevent investment risks, and protect the rights of shareholders [1] - Entrusted financial management involves delegating investment and management of assets to qualified financial institutions [1] - The company must select reputable financial institutions for entrusted management and sign written contracts detailing the investment amount, duration, and responsibilities [2] - The company is required to disclose information regarding entrusted financial management, including investment details and risk management measures [5][6] Chapter Summaries Chapter 1: General Provisions - The system aims to regulate the company's entrusted financial management activities and ensure compliance with relevant laws and regulations [1] - Entrusted financial management is defined as the act of delegating investment and management to professional financial institutions [1] - The company’s subsidiaries are subject to the same regulations regarding entrusted financial management [1] Chapter 2: Operational Rules for Entrusted Financial Management - The company must choose qualified financial institutions with good credit and financial status for entrusted management [2] - A dedicated entrusted financial management account must be established in the company's name [2] - Cash management of temporarily idle funds must comply with specific safety and liquidity requirements [2] Chapter 3: Approval Authority and Information Disclosure - Approval procedures for entrusted financial management must adhere to the company's articles of association and relevant regulations [3] - The company must disclose information regarding entrusted financial management within two trading days after board or shareholder approval [3][4] - Specific thresholds for approval are set based on the company's audited net assets [4] Chapter 4: Management of Financial Management Business - The finance department is responsible for the execution and risk assessment of entrusted financial management [6][7] - The audit department supervises and audits the entrusted financial management activities [7] Chapter 5: Confidentiality Measures - Company personnel must adhere to confidentiality protocols regarding entrusted financial management information [8] Chapter 6: Internal Risk Reporting and Handling Procedures - The finance department must report any adverse factors or uncertainties to the company's financial head and potentially to the board [8] Chapter 7: Other Matters - The system is subject to amendments based on changes in laws and regulations, with the board retaining the final interpretation rights [8]

Core Viewpoint - The document outlines the management system for entrusted financial management of Hubei Dongbei Electromechanical Group Co., Ltd., aiming to standardize operations, ensure fund safety, and prevent investment risks while protecting shareholders' rights [1][2]. Group 1: General Principles - The entrusted financial management refers to the act of the company entrusting idle funds to professional financial institutions for investment and management to enhance fund efficiency and increase cash asset returns [1]. - The company must not use entrusted financial management to circumvent necessary approval procedures for asset purchases or external investments [1]. Group 2: Operational Rules - The company adheres to principles of "standardized operation, risk prevention, cautious investment, and value preservation" in entrusted financial management, ensuring that the funds used are idle and do not affect normal business operations [2]. - Qualified professional financial institutions with good credit and financial status must be selected as trustees, and a written contract must be signed to clarify the investment amount, duration, and responsibilities [2][3]. Group 3: Approval Authority and Disclosure - Approval is required for entrusted financial management amounts exceeding 10% of the latest audited net assets and over 10 million RMB, which must be reviewed by the board of directors [3]. - If the amount exceeds 50% of the latest audited net assets and 50 million RMB, it must be submitted for shareholder meeting approval [3]. Group 4: Management and Risk Control - The finance department is responsible for managing entrusted financial activities, including annual forecasts of total amounts and risk assessments based on financial conditions [4][5]. - The audit department supervises and audits the entrusted financial management, ensuring compliance with approval and actual execution [5]. Group 5: Other Provisions - The document states that any matters not covered will be governed by relevant national laws and regulations, and the board of directors is responsible for interpreting the system [6].