Shenzhen Stock Exchange, Guidelines on the Regulated Operation of Companies Listed on the Chinext

Main contents: Where a director, supervisor or member of the senior management of a company listed on the Chinext accepts a personal interview or a survey, the secretary to the board of directors shall be present throughout the whole process. The contents of the interview/survey shall be recorded in writing and signed by the interviewee, and shall also be signed in confirmation by the interviewer or survey agent and the secretary to the board of directors (Article 5.9).

Where the actual proceeds raised by the listed company exceed the original target amount, the portion in excess shall also be deposited in the dedicated account for proceeds (Article 6.3). The listed company shall, within six months of receipt of the proceeds, properly draw up a plan for the use of the proceeds in excess, submit the same to the board of directors for consideration and adoption, and make a announcement thereof in a timely manner. The proceeds in excess shall be used on the company's main line of business, and may not be used for high-risk investment such as investment in securities and derivatives, entrusted financial management or venture capital investment, or for providing financial assistance to third parties (Article 6.17). The internal audit department shall conduct inspection of the internal control system for monetary capital at least once per quarter (Article 7.7.7).

Related legislation: PRC Company Law (Amended) , Oct 27 2005, CLP 2005 No.10 p.21; PRC Securities Law (Amended) , Oct 27 2005, CLP 2006 No.1 p.31; and Shenzhen Stock Exchange, Share Listing Rules for the Chinext, Jun 5 2009 clp reference:3700/09.10.15/SZpromulgated:2009-10-15effective:2009-10-15