Huisheng Bio: Entrusted financial management system (September 2025)
Wuhan Huisheng Biotechnology Co., Ltd.
Entrusted financial management system
(September 2025)
Chapter 1 General Principles
Article 1 In order to regulate the entrusted financial management behavior of Wuhan Huisheng Biotechnology Co., Ltd. (hereinafter referred to as the "Company"), ensure the safety of the company's assets, effectively control investment risks, increase investment returns, and safeguard the legitimate rights and interests of the company and shareholders, in accordance with the "Securities Law of the People's Republic of China" and the Shenzhen Stock Exchange GEM Stock Listing Rules", Shenzhen Stock Exchange Self-Regulatory Supervision Guidelines for Listed Companies No. 7 - Transactions and Related Transactions" and the "Articles of Association of Wuhan Huisheng Biotechnology Co., Ltd." (hereinafter referred to as the "Articles of Association") and other relevant regulations, this system is formulated based on the actual situation of the company.
Article 2 The term “entrusted financial management” as used in this system refers to the behavior of a company entrusting banks, trusts, securities, funds, futures, insurance asset management institutions, financial asset investment companies, private equity fund managers and other professional financial institutions to invest and manage its assets or purchase relevant financial products.
This system does not apply to the business activities of holding subsidiaries whose main business is investment and financing activities such as fund management and investment and financial management.
Article 3 Companies engaging in entrusted financial management shall abide by the following principles:
(1) The objects of entrusted financial management are financial products with high security, good liquidity and low risk (including structured deposit products). The use of temporarily idle raised funds to invest in financial products must comply with the relevant provisions of the company's "Raised Funds Management System";
(2) The funds entrusted for financial management shall be the company’s own idle funds or temporarily idle raised funds, and shall not occupy the company’s normal operation and project construction funds, nor affect the progress of the project use of raised funds;
(3) To carry out entrusted financial management business, risks must be fully guarded. The trustee should be a qualified professional financial management institution with good credit and financial status, strong profitability and no bad integrity record. A written contract should be signed with the trustee to clearly define the amount, term, investment type, rights, obligations and legal responsibilities of both parties;
(4) Financial product accounts must be established in the name of the company or its holding subsidiary, and no other person’s account may be used to operate financial products;
(5) The company should select a qualified professional financial management institution with good credit and financial status, no bad integrity records and strong profitability as the trustee, and sign a written contract with the trustee to clarify the amount, period, investment types, rights, obligations and legal responsibilities of both parties, etc.
Chapter 2 Approval authority for entrusted financial management
Article 4 If it is difficult for a company to perform review procedures and disclosure obligations for each entrusted financial management due to reasons such as transaction frequency and timeliness requirements, the company may make reasonable estimates of the scope, amount, and duration of entrusted financial management in the next twelve months before conducting entrusted financial management.
If the entrusted financial management amount accounts for more than 10% of the company's latest audited net assets and the absolute amount exceeds RMB 10 million, it must be reviewed and approved by the board of directors before investment and information disclosure obligations must be fulfilled in a timely manner.
If the entrusted financial management limit accounts for more than 50% of the company's latest audited net assets and the absolute amount exceeds RMB 50 million, it shall also be submitted to the shareholders' meeting for review.
If the review authority of the board of directors or shareholders meeting is not reached, the matter shall be reviewed by the chairman of the board or his authorized person.
The usage period of the relevant quota should not exceed 12 months, and the transaction amount at any time within the period (including the relevant amount reinvested in the income from the aforementioned investments) should not exceed the entrusted financial management limit.
If the company and its related parties conduct entrusted financial management, the amount of entrusted financial management shall also be used as the calculation standard, and the relevant provisions of the company's related transactions shall apply.
Article 5 Within the entrusted financial management limit approved by the company’s shareholders’ meeting or board of directors, the company’s board of directors or shareholders’ meeting shall authorize the specific investment in financial management products, amount and implementation time, etc., and the company’s finance department shall be responsible for specific operational matters.
Chapter 3 Daily management and reporting of entrusted financial management
Article 6 The company’s finance department is the specific department responsible for entrusted financial management. Specifically responsible for:
(1) Based on the company's financial status, cash flow status, interest rate changes, etc., judge the source of funds, investment scale, and expected returns of entrusted financial management, conduct content review and risk assessment of financial management products, formulate financial management plans and submit them to the company's financial leader, general manager, and chairman for review;
(2) Raise the funds required for entrusted financial management, handle the relevant procedures for entrusted financial management, handle the accounting of the financial management business on a monthly basis, and archive and keep relevant files;
(3) During the entrusted financial management operation, timely settlement with the professional financial management institution shall be carried out in accordance with the terms of the agreement signed with the professional financial management institution;
(4) During the continuation of the entrusted financial management, pay close attention to the progress of the entrusted financial management and the investment safety status at any time. When any abnormal situation occurs, you must promptly report to the financial leader, general manager, and chairman of the board, so that the company can take effective measures to recover funds and avoid or reduce the company's losses;
(5) After the entrusted financial management expires, take timely measures to recover the principal and interest of the financial management business and conduct relevant accounting processing in accordance with the "Accounting Standards for Business Enterprises" and other relevant regulations.
Article 7 The company's finance department shall do a good job in financial accounting and financial analysis, and support and guarantee the work related to the investment in financial products of the fund settlement center.
Article 8 The company's entrusted financial management matters and their progress should be promptly informed to the company's board secretary, who will perform information disclosure obligations (if necessary) in accordance with relevant regulations.
Article 9 The company shall establish a daily reporting system for entrusted financial management. The settlement personnel of the company's finance department should report the entrusted financial management status of the month to the company's financial leader within 10 days after the end of each month. In the event of abnormal situations or other major changes, the financial leader, general manager, and chairman of the board must be reported promptly in accordance with Articles 6 and 11 of this system.
Chapter 4 Risk Control and Information Disclosure of Entrusted Financial Management
Article 10 The company’s audit department shall supervise the entrusted financial management, and regularly and irregularly audit and verify the progress, profit and loss, risk control and fund use of the company’s investment and financial products.
Article 11 When any of the following situations occurs in the financial products invested in, the company shall promptly disclose information in accordance with relevant regulations:
(1) The financing of financial products fails, fails to complete the filing and registration, is terminated early, and cannot be recovered upon expiration;
(2) Changes in the main terms of the financial product agreement or related guarantee contract;
(3) Major risk events occur in the operation or financial status of the trustee or fund user;
(4) Other situations that may harm the interests of the listed company or have a significant impact.
Article 12 The company’s independent directors and the audit committee have the right to conduct regular or irregular inspections of the company’s entrusted financial management.
Article 13 The specific executives of the company's entrusted financial management and other insiders must strengthen information confidentiality and shall not disclose the company's investment information to other individuals or organizations before the relevant information is publicly disclosed, unless otherwise provided by laws, regulations or normative documents.
Article 14 A company shall not circumvent the review procedures and information disclosure obligations that must be fulfilled when purchasing assets or making external investments in the name of entrusted financial management and other investments, or provide financial assistance to others in disguised form.
If a company controls or has significant influence on the investment direction of financial products, it shall fully disclose the final investment direction of the funds, details of the counterparties or underlying assets involved, and fully disclose investment risks and the company's response measures.
Chapter 5 Supplementary Provisions
Article 15 This system applies to the company and its holding subsidiaries.
Article 16 This system will come into effect after being reviewed and approved by the shareholders' meeting.
Article 17 If there is any matter not covered by this system or there is a conflict between this system and relevant laws, regulations, normative documents or the Articles of Association, the provisions of the relevant laws, regulations, normative documents and the Articles of Association shall apply.
Article 18 The board of directors is responsible for interpreting this system.