I. IntroductionThis Financial Management Policy (hereinafter referred to as "Policy")is formulated in accordance with the relevant laws and regulations ofthe People's Republic of China, the Company's Articles of Association, and the principles of sound financial management. The Policy aims to ensure the Company's financial stability, enhance the efficiency of financial operations, protect the legitimate rights and interests of shareholders, and achieve sustainable development.II. Scope of ApplicationThis Policy applies to all employees, departments, and affiliated institutions of the Company. It is also applicable to the Company's financial activities, including but not limited to budgeting, accounting, internal control, and financial reporting.III. General Principles1. Compliance with Laws and Regulations: The Company shall strictly comply with the laws, regulations, and policies of the People's Republic of China in its financial management activities.2. Financial Stability: The Company shall maintain financial stability and ensure the timely payment of debts and obligations.3. Efficiency and Effectiveness: The Company shall strive to optimize financial operations, enhance the efficiency of financial resources utilization, and achieve cost-effectiveness.4. Transparency and Fairness: The Company shall ensure the transparency and fairness of financial activities, and provide accurate and timely financial information to all stakeholders.5. Risk Management: The Company shall establish a comprehensive risk management system to identify, assess, and control financial risks.IV. Financial Planning and Budgeting1. Planning and Budgeting Cycle: The Company shall conduct annual financial planning and budgeting. The planning and budgeting cycle shall be consistent with the fiscal year of the Company.2. Budgeting Process: The budgeting process shall be carried out in accordance with the following steps:a. Collection of information: Collect and analyze relevant financial data and market information.b. Formulation of budget: Based on the analysis, formulate the budget plan for the next fiscal year.c. Approval and implementation: Submit the budget plan for approval and implement the budget after approval.d. Monitoring and adjustment: Monitor the budget execution and make necessary adjustments in a timely manner.3. Budget Execution: The budget shall be strictly implemented. Any deviation from the budget shall be analyzed and reported to the relevant authorities for decision-making.V. Accounting and Internal Control1. Accounting Standards: The Company shall adopt internationally recognized accounting standards and comply with the relevant regulations of the People's Republic of China.2. Accounting Records: The Company shall keep accurate and complete accounting records, and ensure the consistency of accounting data.3. Internal Control: The Company shall establish and implement a comprehensive internal control system to prevent and detect financial fraud and errors.4. Auditing: The Company shall conduct internal and external audits to ensure the accuracy and reliability of financial statements.VI. Financial Reporting1. Reporting Period: The Company shall prepare financial statements on a quarterly, half-yearly, and annual basis.2. Reporting Content: The financial statements shall include the balance sheet, income statement, cash flow statement, and statement of changesin equity.3. Reporting Responsibility: The Company's financial department shall be responsible for the preparation and submission of financial statements.4. Disclosures: The Company shall provide accurate and timely financial information to all stakeholders, and make appropriate disclosures of potential risks.VII. Risk Management1. Risk Identification: The Company shall identify potential financial risks, including credit risk, market risk, liquidity risk, and operational risk.2. Risk Assessment: The Company shall assess the impact and likelihood of each identified risk.3. Risk Control: The Company shall implement measures to control and mitigate identified risks.4. Risk Monitoring: The Company shall establish a risk monitoring system to continuously monitor the effectiveness of risk control measures.VIII. Monitoring and Evaluation1. Monitoring: The Company's internal audit department shall monitor the implementation of this Policy and report to the Board of Directors.2. Evaluation: The Company shall conduct periodic evaluations of the effectiveness of this Policy and make necessary improvements.IX. ConclusionThis Financial Management Policy is an important document for the Company's financial management. All employees, departments, andaffiliated institutions shall strictly comply with this Policy and contribute to the Company's sustainable development.。
