Group 1: Company Overview - Securities Code: 002240 [1] - Securities Abbreviation: 威华股份 [1] Group 2: Investor Relations Activity - Activity Type: Investor Reception [2] - Date of Activity: January 28, 2015 [2] - Time of Activity: 10:30-11:00 [2] - Location: Guangzhou, Tianhebei Road, Metropolitan Plaza [2] Group 3: Participants - Company Representatives: Liu Yanmei (Board Secretary), Liu Feng (Securities Affairs Representative), Qiu Baohua (Securities Department) [2] Group 4: Key Discussion Points - Discussion on the company's risk regarding the lack of access to the rare earth industry [2] - Inquiry about the absence of announcements regarding Ganzhou rare earth access in the January 13, 2015 disclosure [2]

Group 1: Company Disclosure and Risk Management - The company has consistently reminded investors about the uncertainty regarding the approval of the rare earth industry access for Ganzhou Rare Earth, as stated in previous announcements [3][5] - On November 4, 2013, and May 31, 2014, the company published reports highlighting the risks associated with the uncertain timeline for industry access [3][5] - The company fulfilled its information disclosure obligations and adequately warned investors about potential risks related to the major asset restructuring [3][5] Group 2: Investor Inquiry and Responses - An individual investor inquired about the lack of announcement regarding Ganzhou Rare Earth's failure to obtain industry access [2][3] - The company clarified that the risks were mentioned in the announcement dated January 13, 2015, which included necessary risk warnings related to the major asset restructuring [4][5] - The risk of uncertain access to the rare earth industry was included in the risk factors section of the previously published reports [5]

Group 1: Major Asset Restructuring - The company terminated the major asset restructuring with Ganzhou Rare Earth Group on February 15, 2015, following the group's response on the same day [3] - The decision to terminate the restructuring was authorized by the board of directors on February 16, 2015 [3] - The restructuring was initially supported by the Ministry of Industry and Information Technology, which recognized the group as a key enterprise in the rare earth industry [7] Group 2: Investor Inquiries and Responses - Investors questioned why the Ganzhou Rare Earth Group did not attend the online investor briefing on February 17, 2015; the company clarified that there was no requirement for the group to attend [4] - Concerns were raised about the group's lack of industry access; the company stated that the group was in communication with relevant authorities regarding environmental approvals [5] - The company emphasized that all insider information was kept confidential and that executives were not privy to the timing of the restructuring submission to the regulatory body [9] Group 3: Financial Implications and Shareholder Concerns - The controlling shareholder, Li Jianhua, reduced his holdings to raise approximately CNY 2.015 billion for asset purchases and to cover debts totaling nearly CNY 700 million [8] - Executives reduced their shares for personal financial reasons, such as repaying loans and purchasing property [9] - The company reassured investors that it would not compensate for losses incurred due to market fluctuations, emphasizing the importance of rational investment [10] Group 4: Company Performance and Stockholder Information - As of February 27, 2015, the company confirmed the number of shareholders present during the investor meeting [11] - The company noted that stock price fluctuations were influenced by various market factors, urging investors to be cautious [10]

Group 1: Company Operations and Regulatory Issues - The company is inquiring about the status of its stock suspension and whether it has received any formal disapproval documents from the China Securities Regulatory Commission (CSRC) [2] - There are concerns regarding the potential impact of the establishment of the China Southern Rare Earth Group on the company's restructuring plans [2] - The company has not publicly announced the implications of the upcoming listing of the Southern Rare Earth Group [2] Group 2: Communication and Compliance - The company is questioned about its communication with the Ganzhou Rare Earth Group regarding the disapproval of its major asset restructuring by the CSRC [2] - Investors are interested in the number of stockholders and the company's compliance with industry access permits [2] - The company has previously stated that it submitted feedback materials as required by the CSRC, raising questions about the current status of the Ganzhou Rare Earth Group's industry access permit [2] Group 3: Management and Shareholder Actions - There are inquiries about the accuracy of the company's executives in reducing their holdings and the timing of the major shareholder's receipt of a trading restriction notice from the Shenzhen Stock Exchange [2] - The company is questioned about the reasons behind the delay in public announcements regarding significant trading decisions [2]

Group 1: Company Restructuring and Investor Relations - The company has decided to terminate its restructuring efforts [2] - Ganfeng Group did not participate in the online investor meeting held on February 17 [2] - There are inconsistencies in previous statements made on the interactive platform regarding Ganfeng Group's involvement [2] Group 2: Shareholder Concerns - The specific reasons for the major shareholder's reduction in holdings were questioned [2] - Concerns were raised about whether company executives reduced their holdings due to insider information [2] - Investors inquired if the company would compensate for their losses [2] Group 3: Stock Performance and Market Activity - Questions were posed regarding the recent high turnover rate of the company's stock and the continuous rise in stock price [2] - The number of shareholders at the end of February was requested [2]

Group 1: Incident Overview - On March 10, 2015, approximately 60 investors visited the company's Guangzhou management center, demanding to meet with executives who were not present [1] - Investors displayed aggressive behavior, damaging company property and forcing their way into the office, leading to police intervention [1] - The company temporarily relocated its staff to Meizhou for safety and operational continuity due to the incident [1] Group 2: Investor Concerns and Company Responses - Investors questioned why the company did not pursue administrative review after the termination of a major asset restructuring by Ganshi Group on February 15, 2015 [2] - The company stated there was no legal basis to file a lawsuit against Ganshi Group [2] - The company clarified that it does not qualify for administrative reconciliation as per the China Securities Regulatory Commission's guidelines [2] Group 3: Compensation and Support Requests - Investors demanded compensation for their travel expenses, amounting to 20,000 yuan per person, and a total of 40 million yuan for losses due to alleged false restructuring [2] - The company had previously provided 150,000 yuan for accommodation and living expenses to the visiting investors, asserting no further payments were warranted [2] - Investors were informed that they would need to cover their own travel and accommodation costs for the visit [2] Group 4: Communication Channels - The company encouraged investors to communicate through the investor hotline for any further inquiries [2]

Group 1: Regulatory Status - The company has not yet received a formal written disapproval from the China Securities Regulatory Commission (CSRC) regarding the major asset restructuring [3] - Upon receiving the disapproval, the company will hold a board meeting within ten days and will comply with the Shenzhen Stock Exchange's disclosure obligations [3] - The company has formally requested a clear written opinion from the Ganzhou Rare Earth Group regarding the restructuring's disapproval, but has not yet received a response [4] Group 2: Impact of External Factors - The establishment of the China Southern Rare Earth Group, led by Ganzhou Rare Earth Group, is not expected to impact the company's restructuring as it is not an affiliated enterprise [3] - The company has indicated that the lack of a rare earth industry access permit for Ganzhou Rare Earth Group was communicated during negotiations, but the timeline for approval remains uncertain [6] Group 3: Investor Inquiries and Responses - Investors can access the company's shareholder register by providing proof of their shareholdings [5] - The modification of the financing purpose for the restructuring was proposed by Ganzhou Rare Earth Group and approved by the company's board within the scope of the shareholders' resolution [5] - The company has consistently warned investors about the uncertainties surrounding the restructuring process and the associated risks [7] Group 4: Insider Trading Concerns - The company plans to hold an online investor briefing to address concerns regarding the accurate timing of stock reductions by executives [7] - The major shareholder received a restriction notice from the Shenzhen Stock Exchange on January 13, 2015, but the company only disclosed this information on January 26, 2015, as it was not considered a disclosure obligation [8]