Financial Management System of Zhongyuan Xiehe Cell Gene Engineering Co., Ltd.

Zhongyuan Xiehe Cell Gene Engineering Co., Ltd.

financial management system

Chapter 1 General Provisions

Article 1 In order to strengthen the financial management of the business activities of Zhongyuan Xiehe Cell Gene Engineering Co., Ltd. (hereinafter referred to as the "Company"), standardize the financial management behavior of the company and its branches and subsidiaries, and safeguard the legitimate rights and interests of the company's shareholders and creditors, this system is formulated in accordance with the Company Law, the Accounting Law, the General Principles of Corporate Finance, the Corporate Accounting Standards and the company's articles of association, and in conjunction with the actual situation of the company.

Article 2 The basic principle of financial management is that all financial activities of the company must comply with national laws, regulations, company articles of association and the provisions of this system, do a good job in basic financial management, reflect the company's financial status and operating results in a timely, accurate and complete manner, calculate and pay various national taxes in accordance with the law, and accept inspection and supervision by internal institutions such as shareholders' meetings, boards of directors, and audit committees, as well as finance, auditing, taxation, securities supervision and other relevant government departments.

Article 3 The basic tasks of financial management are to raise funds reasonably in accordance with the law, standardize the planning, control, accounting, analysis and assessment of various financial revenue and expenditures, effectively utilize the company's assets, prevent financial risks in the operation process, and maximize the company's value.

Chapter 2 Financial Management System

Article 4 The company implements a financial management system organized and implemented by the general manager under the leadership of the board of directors. The company's shareholders' meeting, board of directors, audit committee, chairman and general manager respectively exercise corresponding powers over financial management matters in accordance with the provisions of the Company Law and other relevant laws and regulations, as well as the company's articles of association and other internal systems.

Article 5 The financial director of the company shall be appointed or dismissed by the board of directors after being nominated by the general manager, and shall be responsible and report to the general manager and the board of directors.

Article 6 The Financial Management Department (specifically refers to the financial department of Zhongyuan Xiehe Cell Gene Engineering Co., Ltd.) is the functional department of the company's financial accounting management. It is responsible for the unified financial management of the entire group, the preparation of group consolidated statements, centralized allocation of funds and financial decision-making support, the implementation of standardized accounting and settlement, and guidance, inspection and supervision of the financial management and accounting work of branches and subsidiaries.

Article 7 The financial department (referring to the financial departments of the company and its branches and subsidiaries (the same below)) shall set up corresponding positions and formulate corresponding job responsibilities according to the needs of financial management work. Accountants must meet the requirements of corresponding job responsibilities, have good professional ethics, possess necessary professional knowledge and skills, and be familiar with relevant national financial laws and regulations.

Article 8 The financial department may have multiple posts per person or multiple posts per post based on the actual needs of financial work, but the cashier shall not be responsible for auditing, accounting file keeping, and registration of income, expenses, claims, and debts at the same time. The responsibilities and authorities of bookkeeping personnel and personnel who approve, handle, and keep property on economic and business matters and accounting matters should be clear, separated, and restrict each other.

Chapter 3 Main Accounting Policies and Accounting Methods

Article 9 The company shall implement the "Accounting Standards for Business Enterprises - Basic Standards" promulgated by the Ministry of Finance, as well as specific accounting standards for enterprises, application guidelines for accounting standards for enterprises, interpretations of accounting standards for enterprises and other relevant regulations.

Article 10 The company uses RMB as its recording currency, accrual basis as its accounting basis, and historical cost, replacement cost, net realizable value and fair value as its pricing principles.

Article 11 The company shall formulate regulations on main accounting policies and accounting methods, and make specific provisions on the accounting standards to be implemented, accounting year, accounting standard currency, accounting basis and pricing principles, accounting treatment of various economic businesses, preparation of consolidated accounting statements and other methods. The main accounting policies and accounting treatment methods adopted by the company must be consistent in each period and cannot be changed at will without the review and approval of the board of directors.

Chapter 4 Financial Budget Management

Article 12 The financial budget is the company's budget and planning of the capital revenue and expenditure, operating results and financial status during the planned year. It is an important part of the company's annual production and operation plan and the basis for annual comprehensive financial management and performance evaluation. Through the preparation, approval and execution of financial budgets, costs and expenses are strictly controlled to ensure that various business plans and financial goals are achieved as scheduled.

Article 13 The company implements financial budget management. Financial budgets should be centered on achieving target profits. All assets and liabilities, income and expenses, financing and investments, costs and expenses of the company must be included in the financial budget.

Article 14 The company shall formulate financial budget management measures, making specific provisions on the basic content of the financial budget, organizational division of labor, preparation procedures and methods, execution and control, adjustment and evaluation, etc.

Article 15 The preparation of the company's financial budget should be based on the principle of seeking truth from facts, so that it not only meets the requirements of the company's development strategy and business objectives, but also conforms to the company's actual situation and is practical and feasible. During the execution of the financial budget, if the actual situation deviates or is about to deviate significantly from the budget due to changes in the objective environment, changes in business plans, etc., the company should revise the financial budget in a timely manner.

Chapter 5 Financial Management of Holding Subsidiaries

Article 16 Controlled subsidiaries shall establish and improve various financial management rules and regulations in accordance with the "Accounting Law", "Enterprise Accounting Standards", "General Principles of Enterprise Finance" and other relevant national laws and regulations and the provisions of this system, combined with the actual needs of the enterprise's production, operation and financial management work, and continuously improve the level and efficiency of financial management.

Article 17 The company appoints or recommends the financial person-in-charge of a controlled subsidiary. He or she shall be nominated by the company’s general manager or the co-president in charge of the business, report to the chairman of the board for approval, and be appointed or dismissed through the review process of the controlled subsidiary’s board of directors. The financial person in charge of the holding subsidiary accepts the unified guidance and supervision of the company's financial management department in terms of business, and is responsible for the company's financial management and accounting work.

Article 18 The company shall formulate a financial management system for its holding subsidiaries, and make specific provisions for its holding subsidiaries to formulate accounting policies, financial management systems, appointment and responsibilities of financial personnel, fund management, financial budget management, preparation and submission of financial statements, financial inspections, etc. The Financial Management Department should strengthen the guidance, inspection and supervision of the financial management work of the holding subsidiaries.

The holding subsidiary must strictly implement the company's unified financial management system. If the company's financial management system does not involve the related business of the holding subsidiary, the holding subsidiary can revise the financial management measures of the holding subsidiary based on its own business conditions and file it with the Financial Management Department in a timely manner.

Chapter 6 Financing Management

Article 19 Fund raising must be based on the company's development strategy, meet the funds required for the company's production and operation activities, and choose the most advantageous financing method on the basis of taking into account current and long-term interests. Fund raising should be timely, appropriate, and appropriate, focus on efficiency, maintain a sound financial structure, and control financial risks.

Article 20 The company shall formulate an internal control system for financing, strengthen internal control over financing business, ensure scientific and reasonable financing decisions, prevent fraud and errors in the financing process, and control financing risks. The internal control system for financing should make specific provisions on the division of labor and authorization and approval of financing positions, financing decisions, financing execution, financing repayment, and supervision and inspection.

Article 21 When a company raises funds from investors and uses them for specific purposes through the issuance of stocks or other securities of an equity nature, it shall comply with the relevant provisions of the company's "Raised Funds Management System".

Chapter 7 Current Asset Management

Article 22 The company's current assets include cash on hand, bank deposits, other monetary funds, receivables and prepayments, inventories, etc.

Article 23 The management of monetary funds shall comply with various laws and regulations on cash management, bank settlement measures and foreign exchange management measures promulgated by the State Council, the Ministry of Finance, the People's Bank of China, the State Administration of Foreign Exchange and other competent departments, and various bank settlement tools shall be used correctly, the limit of cash on hand shall be determined in accordance with regulations, and cash shall be used within the scope of cash receipts and payments.

Article 24 The company shall formulate a financial expenditure approval system based on the internal management system and business processes, responsibilities and authorities. The company's various financial revenues and expenditures are strictly carried out in accordance with the requirements of the approval system and financial budget management. Financial personnel have the right to refuse to handle monetary capital business that has not fulfilled the approval procedures or for which the approver exceeds the scope of authorization and reports to the approver's superiors in a timely manner.

Article 25 The financial department should strengthen the planned management of monetary fund receipts and expenditures and prepare fund use plans on a regular basis. The financial department should reasonably arrange the use of funds based on the approved fund use plan and implement total control of monetary funds.

Article 26 The financial department shall have full-time cashiers responsible for handling the receipt and payment of monetary funds. The financial department should conduct regular cash inventories to ensure daily and monthly balances to ensure that the accounts are consistent.

Article 27 The financial department should arrange for dedicated personnel to check bank accounts regularly, at least once a month, request bank deposit statements from the bank in a timely manner, and prepare a bank deposit balance reconciliation statement to ensure that the book balance is consistent with the bank statement balance.

Article 28 The company should strengthen the management of reserved bank settlement seals, implement separate management of seals, and strictly prohibit one person from keeping all the seals required for payment. The special financial seal shall be kept by the financial person in charge or his designated personnel, and the reserved seal of the legal representative shall be kept by the legal representative or his authorized personnel.

Article 29 The financial department should strengthen the management of bills related to monetary funds, clarify the responsibilities, authorities and procedures for the purchase, custody, use, transfer and cancellation of various bills, and set up a special registration book for recording to prevent the loss and theft of blank bills.

Article 30 The financial department should form complete document records of monetary funds and revenue and expenditure activities, mainly including various authorization approval documents, monetary fund revenue and expenditure records, cash inventory records, bank statements, bank deposit balance reconciliation statements, etc., and properly keep them.

Article 31 The company's internal audit department shall regularly conduct audits on the implementation of the internal control system of monetary funds, the legality, authenticity and rationality of the income and expenditure of monetary funds, and the security of the custody of monetary funds.

Article 32 The company's receivables and prepayments include notes receivable, accounts receivable, other receivables, prepaid accounts, etc.

Article 33 The company should strengthen the management of bills receivable, and the financial department should set up a "notes receivable reference book" to record each bill's type, number, date of issue, face amount, transaction contract number, payer (and acceptor, endorser) name or unit name, expiration date, interest rate, discount date, discount rate and net discount amount, as well as the date of payment and the amount recovered. After the bill is due and settled, it should be written off in the reference book one by one.

Article 34 The company should strengthen the management of various receivables, increase efforts to clear debts, clean up and recover them in a timely manner, and reduce losses from bad debts. Creditor's rights that are overdue for a long time should be regarded as key collection objects, pay attention to the protection of the statute of limitations, and take effective measures to ensure that the company has legal litigation rights against them, so as to avoid losing the right to litigate after the statute of limitations expires, making the receivables irrecoverable.

Article 35 For accounts receivable that cannot be recovered due to objective reasons and become bad debts, the company shall promptly handle them in accordance with the corresponding national financial regulations and the company's relevant regulations.

Article 36 The company should strictly control prepayments. Under normal circumstances, payment must be made after the goods have been accepted. If prepayments occur due to business needs, they should be included in the monthly fund use plan and approved in accordance with the prescribed authority. No prepayments are allowed without completing relevant procedures. The handling department and the financial department should regularly check the return of prepaid accounts.

Article 37 Inventory refers to the current assets reserved by the company for sale or consumption during the production process, mainly including raw materials, inventory goods, work in progress, low-value consumables, development products, development costs, rental development products, etc.

Article 38 Strict procedures for inventory inspection, collection, and delivery must be established and improved. The financial department conducts accounting processing in a timely manner based on complete incoming and outgoing documents.

Article 39 The financial department shall, in conjunction with the asset management department, conduct regular and irregular inventories of inventories. For inventories with excess inventory, inventory loss, damage, or scrapping, we should cooperate with the asset management department to promptly identify the reasons and assign responsibilities, and conduct accounting processing after completing the approval according to relevant company regulations.

Article 40 The financial department shall measure at the lower of cost and variable net present value on the balance sheet date.

Chapter 8 Non-current Asset Management

Article 41 Non-current assets refer to assets that cannot be realized or consumed within one year or a business cycle exceeding one year. It mainly includes long-term equity investment, investment real estate, fixed assets, construction in progress, intangible assets, long-term deferred expenses, available-for-sale financial assets, etc.

Article 42 The company's various external investments shall comply with national laws, regulations and national industrial policies, comply with the company's development strategy requirements and existing conditions, comply with the cost-benefit principle, and be conducive to improving economic benefits and maximizing the company's value.

Article 43 A company shall formulate an internal control system for external investment, regulate external investment behavior, prevent external investment risks, and ensure the safety of external investment. The internal control system for external investment should include the division of responsibilities and authorization and approval of external investment, and make specific provisions on feasibility research and assessment, decision-making and management, disposal, inspection and supervision of external investment.

Article 44: External investment and securities investment shall be carried out in accordance with the relevant provisions of the company's "Internal Control System for External Investment" and "Securities Investment Management System".

Article 45 The company should establish and improve fixed asset management methods, implement standardized management of the purchase, construction, use, storage, and disposal of fixed assets to ensure the safety and effective use of fixed assets.

Article 46 All fixed assets must be managed and accounted for in the company's statutory accounting accounts. The finance department, together with the fixed assets management department, conducts an inventory of fixed assets every year, prepares a detailed inventory of fixed assets, and checks it with the fixed assets ledger to ensure that the accounts are consistent with the facts. Fixed assets that are inconsistent with the accounting facts and have lost their use value and need to be scrapped should be dealt with in accordance with the relevant provisions of the company's "Fixed Asset Management Measures" and "Asset Loss Management Measures".

Article 47 The company should establish and improve engineering project management methods and implement standardized management of the project establishment, design, cost, construction process, completion settlement, etc. The company should prepare project progress and capital investment plans according to the different construction periods of each project, and strictly control the cost of projects under construction on the premise of ensuring the quality of projects under construction.

Article 48 The completed project must undergo the final accounts review of the project under construction. If necessary, the project supervision department shall conduct a final account audit. The project implementation department shall organize completion acceptance in a timely manner and submit the settlement report and transfer list to the financial department so that the project under construction can be transferred to fixed assets or other related accounts in a timely manner.

Article 49 If a project under construction has reached the intended usable state but has not yet completed the final settlement, it shall be transferred to fixed assets or other related accounts at the estimated value based on the project budget, cost or actual project cost from the date it reaches the intended usable state, and depreciation or amortization shall be accrued in accordance with the company's accounting policies, and adjustments shall be made after the completion settlement procedures are completed.

Article 50 Intangible assets refer to assets that are acquired or self-created by a company for production and business activities and can bring future economic benefits to the company, but do not have physical entities. They mainly include patent rights, trademark rights, land use rights, franchise rights, proprietary technology and goodwill, etc.

Article 51 Other assets mainly include long-term deferred expenses, deferred income tax assets and other assets.

Article 52 Start-up expenses refer to the expenses incurred by the company during the preparation period, including personnel wages, office expenses, training expenses, travel expenses, printing expenses, registration fees, and borrowing expenses that are not included in the value of fixed assets, etc., and shall be included in the profit and loss of the month in which production and operation begin.

Article 53 Long-term deferred expenses refer to various expenses other than start-up expenses that have been expended but have an amortization period of more than one year (excluding one year), including fixed asset repair expenses, improvements to leased fixed assets, fixed asset overhaul expenses using a prepayment method, one-time prepaid fixed asset leasing fees, long-term bond issuance fees paid in one lump sum to financial institutions, and other deferred expenses with an amortization period of more than one year.

Chapter 9 Liability and Guarantee Management

Article 54 The company shall scientifically and reasonably control the scale of liabilities, determine the debt structure, optimize the company's financial structure, and prevent financial risks caused by excessive debt based on the needs of development strategies and operating activities.

Article 55 The company should establish and improve the internal control system for guarantees, strengthen the review and evaluation of guarantees, strictly implement internal approval and decision-making procedures, standardize guarantee behaviors, and prevent guarantee risks. The company's various guarantees must strictly comply with various national laws and regulations and the company's articles of association and other internal rules and regulations.

Article 56 The company's guarantee internal control system should at least include job division and authorization approval, guarantee evaluation and approval control, guarantee execution control, information disclosure, supervision and inspection, etc.

Chapter 10 Cost and Expense Management

Article 57 Costs and expenses refer to various business-related expenditures incurred by the company in its business operations, and the boundaries between period expenses and costs should be reasonably divided. Period expenses include sales expenses, administrative expenses, research and development expenses, and financial expenses, which should be directly included in the current profit and loss; the cost of goods sold or services provided in the current period should be transferred to the current profit and loss, and listed as separate items in the income statement.

Article 58 The following expenditures of the company shall not be included in costs and expenses: expenditures for the purchase and construction of fixed assets, intangible assets and other assets; confiscated property; various fines, sponsorships and donations; and other expenditures that are not included in costs and expenses according to state regulations.

Article 59 The company implements cost and expense budget management. In accordance with the requirements of financial budget management, the company prepares annual cost and expense budgets, decomposes, implements, and assesses them accordingly, and implements cost and expense control over the entire process of operating activities.

Article 60 The company implements cost and expense management for all employees. The company decomposes cost and expense budgets into various functional departments and management links, establishes a cost and expense management responsibility system, clarifies the responsibilities and authorities of relevant departments and positions, and ensures that incompatible positions that handle cost and expense business are separated, restricted and supervised.

Article 61 The company shall formulate an expense expenditure approval system, clarify the scope and standards of expense expenditures, the authorization method, authority, procedures, responsibilities and related control measures of the approver for costs and expenses, stipulate the scope of responsibilities and work requirements of the person in charge of handling expense expenditures, and strictly control the occurrence and payment of various expenses.

Article 62 The financial department shall calculate costs and expenses in a true, accurate, complete and timely manner according to the company's cost and expense scope and accounting management requirements. It shall not arbitrarily change the recognition standards or measurement methods of costs and expenses, and shall not list costs and expenses falsely, over-list, not list, or under-list costs. It is not allowed to falsify and replace actual costs and expenses with estimates, budgets, plans, quotas, etc., nor is it allowed to artificially adjust or balance costs and expenses on a monthly, quarterly or annual basis.

Chapter 11 Income and Profit Distribution

Article 63 Revenue refers to the total inflow of economic benefits generated by the company in its daily activities such as selling goods, providing services, transferring asset use rights, etc., excluding payments collected on behalf of third parties or customers.

Article 64 The company shall reasonably recognize and measure various incomes based on the nature of the income and in accordance with the principles of income recognition. All the company's income should be included in the unified accounting and management of the financial department.

Article 65 Profit refers to the company’s operating results during a certain accounting period, including operating profit, total profit and net profit. The company's profits after paying corporate income tax in accordance with the law shall be distributed in the following order:

(1) Make up for the losses of the previous year;

(2) Withdraw 10% of the statutory provident fund;

(3) Withdraw discretionary provident fund;

(4) Payment of dividends.

Article 66: When the cumulative amount of the company's statutory reserve fund exceeds 50% of the registered capital, no further withdrawals may be made. After withdrawing the statutory provident fund, the shareholders' meeting shall decide whether to withdraw the discretionary provident fund. The company shall not distribute profits to shareholders before making up for the company's losses and withdrawing statutory reserve funds.

Article 67 When the statutory reserve fund is converted into share capital, the retained reserve fund shall not be less than 25% of the company's registered capital before the conversion. After the shareholders' meeting makes a resolution on the profit distribution plan, the board of directors must complete the distribution of dividends (or shares) within 2 months after the shareholders' meeting.

Article 68 The company should pay attention to reasonable investment returns for investors, maintain the continuity and stability of the profit distribution policy, and at the same time take into account the long-term interests of the company, the overall interests of all shareholders and the sustainable development of the company. Companies can distribute dividends in cash, stocks, or a combination of cash and stocks. Interim profit distribution can be carried out based on the actual profit situation. Except for stipulated special circumstances, the company will distribute dividends in cash when it is profitable for the year and the accumulated undistributed profits are positive. The ratio of the total cash dividends distributed by the company in the year (including cash dividends distributed in the interim period) to the net profit attributable to shareholders of the listed company in the annual consolidated accounting statements shall not be less than 10%. The specific proportion of profits distributed in cash shall be formulated by the board of directors based on the company's operating conditions and relevant provisions of national laws, regulations and normative documents, and shall be reviewed and decided by the shareholders' meeting. When the company does not distribute cash dividends due to specified special circumstances, the board of directors will provide a special explanation of the specific reasons for not distributing cash dividends, the exact use of the company's retained earnings and expected investment income, etc., submit it to the shareholders' meeting for review, and disclose it in the company's designated media.

Chapter 12 Accounting File Management

Article 69 Accounting files refer to accounting vouchers, accounting books, financial accounting reports and other professional financial management and accounting materials. They are important historical materials and evidence that record and reflect the economic business of the unit.

Article 70 The company shall formulate accounting archives management measures, strengthen the collection, sorting and management of accounting archives, effectively protect and utilize accounting archives, and serve the company's various tasks.

Chapter 13 Handover of Accounting Work

Article 71 Financial personnel must go through work handover procedures with their replacements due to job transfers, job rotations, or resignations. Those who fail to go through the handover procedures may not leave their posts.

Article 72 When financial personnel handle handover procedures, they need to sort out the handover materials and prepare a handover inventory. The handover process must be supervised by a handover supervisor. The handover of general financial personnel shall be supervised by the manager in charge; the handover of manager-level personnel in the financial department shall be supervised by the director in charge; the handover of the director of the financial management department shall be supervised by the person in charge of finance of the company.

Article 73 After the handover is completed, both parties to the handover and the person supervising the handover should sign on the handover list. The handover list should indicate the name of the company, the date of handover, the positions and names of both parties to the handover and the person supervising the handover, the number of pages in the handover list, etc. The handover list should be made in triplicate, with each handover party holding one copy and the financial department keeping one copy.

Chapter 14 Financial Accounting Reports and Financial Analysis

Article 74 Financial accounting reports are documents prepared by the company and reflect the company's financial status on a specific date and operating results, cash flow and other financial accounting information during a certain accounting period.

Article 75 The financial accounting report consists of financial statements, notes to the financial statements and other relevant information and materials that should be disclosed in the financial accounting report. Financial accounting statements include balance sheets, income statements, cash flow statements, statements of changes in owner's equity and related schedules.

Article 76 Notes to financial statements mainly include descriptions of the basis for the preparation of financial statements, compliance with corporate accounting standards, important accounting policies, important accounting estimates, changes in accounting policies and accounting estimates, error corrections, related party relationships and transactions, contingencies and commitments, non-adjustment matters after the balance sheet date, and other major matters.

Article 77 The format of financial accounting reports shall comply with the provisions of the Accounting Standards for Business Enterprises and other relevant laws and regulations.

Article 78 The company shall prepare and provide financial accounting reports to the outside world in accordance with the provisions of the Accounting Law, the Regulations on Enterprise Financial Accounting Reports, the Accounting Standards for Enterprises and other relevant laws and regulations. The company shall submit and disclose annual financial accounting reports to the CSRC offices and stock exchanges within four months from the end of each fiscal year, submit semi-annual financial accounting reports to the CSRC offices and stock exchanges within two months from the end of the first half of each fiscal year, and submit quarterly financial accounting reports to the CSRC offices and stock exchanges within one month from the end of the first three and nine months of each fiscal year.

Article 79 The person in charge of the company, the person in charge of accounting work and the person in charge of the accounting department shall be responsible for the authenticity and completeness of the financial accounting report.

Article 80 When a company submits financial statements in accordance with the regulations of finance, taxation, statistics and other government agencies before the periodic report is publicly disclosed, it shall complete the registration and filing work, mark the words "Unaudited, please pay attention to confidentiality" on the cover page of the financial accounting statements, and control the insiders of the financial performance involved in the financial statements to a minimum.

Article 81 The finance department shall regularly organize special financial analysis meetings to conduct a comprehensive analysis of the company's solvency, operating capabilities, profitability, profitability of all assets, etc. on a specific date and a certain accounting period, based on financial statements and other data, by using specialized financial analysis methods such as comparative analysis and trend analysis, and propose improvement measures and suggestions based on the problems and deficiencies exposed by the analysis.

Chapter 15 Asset Loss Management

Article 82 Asset loss means that there is conclusive and legal evidence showing that the use value and transfer value of the asset have been substantially and irrecoverably lost, and it can no longer bring future economic benefits to the company. Including losses from bad debts, inventory losses, losses from fixed assets and projects under construction, guarantee losses, equity investment or debt investment losses, and losses from operating securities, futures, and foreign exchange transactions, etc.

Article 83 The company shall establish and improve various asset management responsibility systems, implement asset management responsibilities at all levels, and prevent and reduce asset losses. In order to ensure the authenticity of the company's assets and the accuracy of its financial information, the identified asset losses should be financially written off after approval in accordance with the relevant national financial laws and regulations.

Article 84 The company shall formulate asset loss management measures and make specific provisions on the recognition standards of asset losses, the authority and procedures for handling asset losses, the disposal of write-off assets, the audit and information disclosure of write-off assets, and liability investigation.

Chapter 16 Financial Supervision

Article 85 The financial department is the supervisory department for the company's various financial revenue and expenditure businesses. Financial personnel should exercise financial supervision powers in accordance with national financial regulations and the provisions of this system. Financial personnel shall refuse to handle or correct financial accounting matters that violate national financial regulations and this system.

Article 86 The board of directors, general manager, and financial director shall support financial personnel in performing financial supervision and other duties in accordance with financial laws and regulations and this system, and shall not instruct, instruct, or force financial personnel to handle financial accounting matters illegally.

Article 87 The company's financial accounting work is subject to inspection and supervision by the audit committee and internal audit department.

Article 88 The company should continuously improve the audit, supervision, and control mechanisms for financial management and accounting, so as to promote the healthy, stable, and sustainable development of the company.

Chapter 17 Supplementary Provisions

Article 89 The Board of Directors is responsible for formulating and interpreting this system. The company's financial management department may formulate corresponding financial management measures or regulations based on this system and the company's financial management needs, and implement them upon approval.

Article 90 In the event that the relevant national laws, regulations and the company's articles of association are modified and this system conflicts with the laws, regulations and the company's articles of association, the relevant national laws, regulations and the company's articles of association shall be implemented, and the board of directors shall revise this system accordingly.

Article 91 This system shall be implemented from the date of review and approval by the board of directors.