Continue to Improve the Corporate Governance Structure and Improve the Standard Operation Level to Ensure the Healthy and Sustainable Development of the Company - Huabao Carried out Special Training on Strengthening Standard Operation

In order to keep abreast of the latest laws, regulations and policies of the capital market, further deepen the relevant personnel's understanding of the regulatory rules of listed companies, and improve its standard operation and management level of raised funds, Huabao organized various functional departments and affiliated enterprises on the afternoon of June 16, 2023, and invited ZHOU Huilin, a lawyer of Beijing Zhong Lun Law Firm, and ZHOU Yuzhu, Senior Manager of Zheshang Securities Co., Ltd. to carry out training on the standard operation of listed companies and special training on the management of funds raised by listed companies.

During the first part of the training, Lawyer ZHOU interpreted the regulatory rules and key regulatory matters (such as related parties and related relationships, significant transactions, etc.) from the four dimensions of standard operation, information disclosure, insider trading and securities legal liability, analyzed and interpreted the cases of other listed companies and the actual situation of the Company to enhance the employees’ understanding of the standard operation of listed companies.

During the second part of the training, ZHOU Yuzhu explained in detail how to carry out compliance management of the raised funds and the specific processes that must be performed by each business from the three aspects of the overview of the raised funds, the use of the raised funds, and the management and supervision of the raised funds from a professional perspective, and analyzed in detail the nodes and matters that should be paid attention to in the process of the storage of the raised funds, cash management and use. She also had a full discussion on the use of funds for the Company's fund-raising projects, further clarified the management ideas and operation paths, and further clarified the error-prone points in the process of business execution based on specific cases.

Finally, the Company responded to the call of the China Securities Regulatory Commission and the initiative of the Tibet Securities Regulatory Bureau to publicize matters concerning the prevention of illegal fund-raising and actively participated in the anti-illegal fund-raising QA activities.

Under the current continuously developing and improving capital market environment, for the purpose of laying a solid foundation for its development, the Company shall continuously improve the corporate governance structure and enhance the standard operation level. The content of the training is rich, targeted and practical, which would further facilitate the healthy and sustainable development of the Company.