In order to strengthen the R&D budget management of the company and improve the efficiency and benefit of project implementation, these measures are specially formulated.

Chapter I General Principles

Article 1 R&D budget management is an internal control management system, which determines the annual expenditure amount according to the development strategic objectives set by the enterprise, decomposes it layer by layer and issues it to various departments within the company, and takes a series of budgets, controls, coordinates and assessments as the content, and controls and manages the whole process of business activities that each department is responsible for from beginning to end, and evaluates and evaluates the realized performance. R&D budget management is a general term for the management methods of budget preparation, approval, execution, control, adjustment, assessment and supervision.

Article 2 The basic tasks of R&D budget management are as follows:

1, according to the strategic objectives of the enterprise, determine the annual expenditure required by the enterprise and organize its implementation.

2. Define the responsibilities and authorities of budget management of all departments of the company, and give full play to the functions of budget departments and budget responsible units at all levels.

3. Rational allocation of enterprise resources.

3. Manage, control, analyze and supervise the research projects of enterprises.

4. Provide an effective basis for evaluating the financial performance of enterprises.

Chapter II Principles of R&D Budget Management

Article 3 The R&D budget management should conscientiously implement the national and company's policies, with the goal of ensuring the orderly development of the company's projects, rationally allocate and use budget resources, and fully improve economic benefits.

Article 4 The R&D budget management shall be based on the principle of seeking truth from facts, and on the basis of scientific prediction and decision-making, formulate advanced and feasible budget indicators; It is necessary to establish a control and feedback system and strengthen the monitoring of the legality and rationality of budget control implementation; It is necessary to establish an incentive and restraint mechanism through budget management to mobilize the enthusiasm of all departments and enterprise employees to participate in budget management.

The company's R&D budget management is implemented by the general manager responsibility system, implemented at different levels, and participated by all staff. All departments assist in charge and strictly implement, * * * with supervision and control, to ensure the realization of budget objectives.

Chapter III Main Items of R&D Budget

Article 6 The R&D budget is the total budget of an enterprise calculated according to the budget management procedures and through the budget model, which is a comprehensive manifestation of the effective allocation and utilization of the overall resources of the enterprise. It mainly includes fixed assets investment budget, working capital expenditure budget and financial expense budget.

Article 7 The fixed assets investment budget mainly assesses the budget for purchasing R&D equipment for the projects under research this year. Based on the project report and expenditure list of the R&D department, the budget is based on the previous expenditure details.

Article 8 The working capital expenditure budget mainly assesses the expenditure of R&D personnel's labor costs and prepaid expenses in this year. The working capital expenditure budget reflects the expenditure and funding sources of research projects throughout the year, and determines the scale, investment time, amount and financing method of R&D investment throughout the year according to the market demand and capital affordability. Mainly based on the relevant contents of the project report and annex list of the project under study.

Article 9 The financial expense budget is divided into financial revenue and expenditure budget, assets and liabilities budget and financing budget. According to the operating budget, capital expenditure budget and other expenditure budgets, the financial budget reflects various economic indicators related to the cash receipts and payments, operating results and financial status of the enterprise, including business income budget, cost budget and so on.

Chapter IV Division of Responsibilities for R&D Budget Management

Article 10 Under the leadership of the general manager, the final decision-making layer of an enterprise's internal budget is composed of the company's management layer and the heads of various departments. Its main responsibilities are as follows:

1, responsible for formulating relevant budget management systems, policies and procedures, determining the lead department of each major budget, and formulating the responsibilities of each department in budget management, etc.

2. Determine the annual budget guiding ideology and key indicators according to the company's budget guiding ideology and the company's annual development plan.

3. Review and approve the draft annual budget, and review and approve the annual budget adjustment plan.

4. Supervise and inspect the budget implementation.

5. Coordinate and solve problems in budget preparation and implementation.

Article 11 The General Department is the comprehensive management department of R&D budget management, and its main responsibilities are as follows:

1, organize the formulation of relevant systems for budget management, and implement the specific implementation of the R&D budget management system.

2. Organize to draw up a specific manual for the preparation of the annual budget and issue the general requirements for the preparation of the annual budget.

3. Organize the preparation of the company's budget, summarize, review, comprehensively balance and adjust the budgets of various disciplines, draw up the company's annual budget plan, submit it to the management for approval, and go through the reporting procedures.

4. Distribute and execute the approved annual budget.

5, with all departments * * * to supervise and check the implementation of the budget, regularly summarize the information of the budget implementation, and put forward the evaluation opinions of the budget.

6, collect and sort out all kinds of information of budget preparation, establish and improve the basic work of budget management.

Twelfth each project department is responsible for the preparation of professional budget, the main responsibilities are as follows:

1, according to the overall requirements of annual budget preparation, put forward the requirements of professional budget preparation.

2. Organize the preparation of professional budget and draw up the annual professional budget plan.

3. Participate in the comprehensive balance of various budgets.

4. Check and analyze the implementation of the professional budget, regularly summarize the information on the implementation of the professional budget and distribute it to the General Department.

5, put forward the adjustment plan of professional budget.

7, put forward the evaluation opinions of professional budget implementation results.

Chapter V R&D Budget Preparation and Approval Procedures

Article 13 The basis for compiling the R&D budget is as follows:

1, relevant national regulations and policies.

2, the company's business development strategy and objectives.

3. Investment and financing agreement of the company.

4. Arrangements for major business matters such as company restructuring, mergers and acquisitions, and capital management.

5, the company's financial policy and accounting system.

6. Relevant quota standards and empirical data of the company and industry.

8, the company's specific requirements for budgeting.

Article 14 The principles for compiling the R&D budget are as follows:

1, the principle of authenticity.

2. The principle of research and development.

3. The principle of timeliness.

4. Normative principles.

5, the principle of accuracy.

Fifteenth R&D budget preparation procedure is to prepare the operating budget and capital expenditure budget first, and then prepare the financial budget on this basis. The operating budget is led by the management and marketing department, the fixed assets investment budget is led by the management department, and the financial budget is led by the comprehensive department. The budgets of various disciplines should complement each other and be closely related to form a complete system, so as to achieve the company's internal control and management objectives. In the process of budget preparation, we should reasonably determine the driving factors of various budget indicators such as income, cost, investment and financing based on the production and operation activities of enterprises, and scientifically predict various budget indicators.

Article 16 Time requirement for annual budget preparation: In the fourth quarter of each year, the company's budget management committee determines the company's main development goals for the next year according to the company's annual development goals and budget preparation requirements, assigns the budget preparation tasks for the next year, and puts forward specific preparation requirements. Relevant departments shall fill in the budget template according to the relevant requirements, and report their respective budgets and preparation instructions for the next year to the General Department, which will review, summarize and comprehensively balance them before submitting the draft budget to the General Manager for examination and approval.

Article 17 According to the budget issued after the approval of the company, the comprehensive department will release it to all departments for implementation.

Article 18 In the process of budget submission, approval and release, the budget should be balanced from top to bottom and from bottom to top for many times, and the comprehensive department and various departments should work closely together to make adjustments to the budget preparation.

Article 19 Each department shall, according to the management needs, prepare a quarterly budget at the end of the last month of each quarter, and prepare a monthly fund plan at the end of each month according to the quarterly budget. The quarterly budget and monthly fund plan shall be detailed for the annual budget, compiled according to the project, as detailed as possible, so as to be operable and assessable.

Chapter VI Implementation and Analysis of R&D Budget

Article 20 After the General Department issues the itemized budgets of all departments, all departments should make detailed and feasible decomposition plans according to the quarter, and implement them to specific projects and responsible persons, make overall arrangements for various revenues and expenditures, and strengthen management. At the end of the last month of each quarter, each department is responsible for compiling and reviewing the budget for the next quarter and reporting it to the General Department; At the beginning of each quarter, the comprehensive department announces the completion of budget items and budget funds of each department.

Article 21 All expenditures in the budget can only go through the loan and reimbursement procedures after being reviewed and signed by the relevant leaders. The General Department will not handle the expenditures with incomplete review procedures.

Twenty-second to strengthen the analysis of budget implementation, the establishment of a regular budget announcement system. Responsible departments should prepare monthly budget implementation reports, grasp the dynamics and differences of budget implementation, focus on the analysis of abnormal situation reports in budget implementation, and submit them to the company's leadership for decision-making, adjust business measures in time, and ensure the completion of enterprise budget objectives.

Chapter VII Supervision and Assessment of R&D Budget

Article 23 The General Department allocates budget funds on a quarterly basis according to the budgets reported by various departments. Expenditure items exceeding the quarterly budget cannot be reimbursed in the current quarter, and will be reimbursed in the next quarter.

Article 24 The General Department shall analyze the implementation of the budget every month. For the problems existing in the budget implementation, the leaders of the responsible departments have the responsibility to find out the reasons, put forward suggestions and take corresponding measures. The General Department is responsible for timely feedback on the problems arising from budget implementation, and under the leadership of the management, take effective measures to solve them or organize and coordinate them to ensure the completion of the R&D budget.

Article 25 The implementation result of the budget is ultimately reflected in the completion of performance indicators, so the budget assessment should be considered in combination with the enterprise performance assessment, and at the same time, the timeliness, standardization and accuracy of the budget should also be assessed.

Chapter VIII Adjustment of R&D Budget

Article 26 In order to ensure the seriousness of the budget and strengthen its binding force, in principle, the budget will not be adjusted in the middle of the year.

Twenty-seventh if the following special events occur, which have a significant impact on the business activities and financial revenue and expenditure of the enterprise, making it really difficult to realize the issued budget, it is allowed to adjust the budget.

1, major policy adjustments within the enterprise.

2. Changes in business scope.

3. The national macro-policy has been substantially adjusted.

4. Major changes have taken place in the form of market economy, and the business objectives of enterprises must be adjusted.

5. irresistible events occur in the political and economic life of the country.

6, the impact of large-scale natural disasters, etc.

Article 28 If the annual budget needs to be adjusted, the relevant departments shall submit the application for budget adjustment to the General Department before the end of June of that year. If the comprehensive department can't solve it in a balanced way, report it to the company and adjust the annual budget. The adjustment of the budget shall be handled according to the original budget compilation and approval procedures.

Article 29. In case of extra-budgetary project expenditures due to special circumstances or emergency tasks, and it is impossible to wait for the adjustment of the budget, the corresponding approval procedures must be performed, and the General Department shall handle the payment according to relevant documents such as signing the newspaper or meeting minutes.

Chapter IX Supplementary Provisions

Thirtieth these measures shall be formulated by the General Department and shall be responsible for the interpretation and revision.

Article 31 These Measures shall be implemented as of the date of promulgation.

Beijing * * * * * * Co., Ltd.

March 1, 2008