Core Viewpoint - The document outlines the risk prevention system for related party transactions between Huaihe Energy Group Co., Ltd. and Huainan Mining Group Financial Co., Ltd., emphasizing the importance of safeguarding the safety of deposits and ensuring financial independence [1][2]. Group 1: General Principles - The system aims to regulate transactions between the company and its controlling shareholder, ensuring the safety of deposits in the financial company [1]. - Transactions such as deposits, loans, and entrusted financial management must adhere to the principles of voluntary equality and maintain the company's financial independence [1][2]. - The company is prohibited from providing entrusted loans or financial management to other related parties through the financial company [1]. Group 2: Information Disclosure - The company must comply with national laws and regulations, as well as the requirements of regulatory bodies when engaging in financial transactions with the financial company [1][2]. - The board of directors must make prudent decisions and follow the prescribed decision-making procedures and disclosure obligations for related party transactions [1][2]. Group 3: Risk Assessment - The company must evaluate the financial company's operational qualifications and risk status before engaging in deposit business [3]. - Regular reviews of the financial company's audit and financial reports are required to assess the risk status of deposited funds [3]. - The company can withdraw deposits partially or fully to test the safety and liquidity of the funds [3]. Group 4: Risk Prevention - A risk disposal plan must be established to ensure the safety of deposited funds, with measures to withdraw deposits or suspend transactions if certain risk indicators are met [4]. - The company must promptly report any abnormal fluctuations in deposits to the board for review [4]. Group 5: Other Matters - The company will hold accountable any personnel responsible for losses due to unrecoverable funds deposited in the financial company [5]. - The system will be revised in accordance with new regulations from relevant authorities [5].