Meeting Details - The 11th meeting of the 4th Supervisory Board of Century Hengtong Technology Co., Ltd. was held on May 9, 2025, via online communication, with all three supervisors present [1][2] - The meeting was chaired by Mr. Hu Hairong, the chairman of the Supervisory Board, and complied with relevant laws and regulations [1] Resolutions Passed - The Supervisory Board approved the proposal for the Board of Directors to be authorized to issue financing to specific targets, which aligns with legal requirements and is beneficial for the company's sustainable development [1] - The voting results were unanimous, with 3 votes in favor, 0 against, and 0 abstentions [2] Next Steps - The matter will be submitted for review at the company's 2024 annual general meeting [2]

Core Viewpoint - The company is preparing for its 2024 Annual General Meeting (AGM) with specific guidelines to ensure order and efficiency, while also addressing its financial performance and strategic direction in a challenging market environment [1][2][3]. Meeting Guidelines - The AGM will only allow entry to shareholders, board members, and invited guests, with strict measures to maintain order [1]. - Shareholders must provide proof of shareholding and register 10 minutes before the meeting [1]. - Shareholders wishing to speak must register in writing, with speaking time limited to 5 minutes per shareholder [2]. - Voting will be conducted both on-site and online, with specific time slots for each [3]. Financial Performance - In 2024, the company reported a revenue of CNY 2,052.48 million, a decrease of 34.01% compared to 2023 [21]. - The net profit attributable to shareholders was -CNY 329.28 million, a decline of 647.21% year-on-year [21]. - The company’s total assets as of December 31, 2024, were CNY 6,341.14 million, with net assets of CNY 1,309.45 million [21]. Industry Overview - The construction materials industry, including coatings and insulation, is facing challenges due to a complex economic environment, with a significant decline in new housing starts and sales [7][8]. - The market for construction coatings is approximately CNY 900 billion, with the overall industry capacity reaching around CNY 4 trillion when including services [8]. - The company remains a key player in the industry, focusing on enhancing competitiveness and expanding its market share despite the downturn [10][11]. Strategic Initiatives - The company aims to strengthen operational efficiency and focus on quality revenue, while also addressing historical debts and enhancing its marketing strategies [14][19]. - Plans for 2025 include applying for a credit limit of up to CNY 650 million from financial institutions to support growth [26]. - The company is also proposing to cancel the supervisory board and establish an audit committee to streamline governance [30].

Fundraising Overview - The company raised a total of RMB 435,416,006.56 through the issuance of 38,261,512 shares at a price of RMB 11.38 per share, with net proceeds after fees amounting to RMB 396,359,402.79 [1][2] - The actual usable funds after deducting underwriting and other issuance costs were RMB 378,305,888.60 [2] Fund Usage and Management - As of December 31, 2024, all fundraising projects have been completed, and any surplus funds were permanently allocated to supplement working capital [3][6] - The company adhered to regulatory requirements for managing and using the raised funds, with no violations reported [4][13] - The company established a tripartite supervision agreement with its underwriter and banks to ensure proper management of the funds [4] Fund Allocation and Surplus - The company used RMB 459.73 million of the excess funds to permanently supplement working capital, which is within the limit of 30% of the total excess funds [8][11] - By the end of 2024, all excess funds totaling RMB 2,867.20 million were permanently allocated to working capital [9] Financial Performance - The company reported a net profit of RMB 51,336,898.36 for the year 2024, with a proposed cash dividend of RMB 5.00 per 10 shares, totaling RMB 77,066,773.50 [20][21] - The total cash distribution and share buyback amounted to RMB 112,509,858.26, representing 219.16% of the net profit [21] Audit and Compliance - The company’s fundraising and usage report was verified by the accounting firm, which confirmed compliance with relevant regulations [14][15] - The company plans to continue its relationship with the auditing firm, Lixin, for the 2025 fiscal year [28][29] Stock Incentive Plan - The company adjusted the grant price for its 2023 stock incentive plan to RMB 7.88 per share following a cash dividend distribution [57][59]

Group 1 - The company approved the permanent use of surplus funds from the "Gaoming Plant Phase II Expansion Project" amounting to 10.50 million yuan for daily operations [1] - As of December 31, 2024, the company has no surplus funds in use [2] - The balance of unused raised funds as of December 31, 2024, is 627.50 million yuan, including 67.50 million yuan in demand deposits and 560 million yuan in time deposits [3] Group 2 - The company extended the timeline for the "Zhongqi (Hubei) New Materials Phase I Construction Project" and "R&D Center Information Technology Construction Project" to August 31, 2024 [4] - The timeline for the "Luocheng Phase I" project was extended to September 30, 2025 [4] Group 3 - The company proposed to change the use of remaining funds from the "R&D Center and Information Technology Construction Project" to "High Purity Quartz Sand R&D Center and Information Technology Construction Project" with an amount of 43.30 million yuan [5] - The remaining funds from the "Zhongqi (Hubei) New Materials Phase I and II Construction Projects" will be redirected to a new project for producing 10,000 tons of semiconductor-grade and photovoltaic crucibles, amounting to 239.44 million yuan [5] Group 4 - The company used idle raised funds to purchase financial products, exceeding the authorized limit of 500 million yuan, with a maximum amount of 570 million yuan during the period from May 9, 2024, to April 23, 2025 [7] - The company has taken measures to ensure compliance with fund management regulations and prevent similar occurrences in the future [7][8] Group 5 - The company has disclosed all relevant information in a timely and accurate manner, and all used raised funds have been directed to the promised investment projects without significant violations [8] Group 6 - The company plans to use up to 600 million yuan of idle raised funds and 300 million yuan of self-owned funds for cash management, totaling 900 million yuan [66] - The cash management will focus on high-security, high-liquidity products with a maximum investment period of 12 months [72]

Core Viewpoint - The company has passed several resolutions regarding its financial reports, profit distribution, and governance matters, which will be submitted for approval at the upcoming annual shareholders' meeting [3][9][13][26][43]. Group 1: Financial Reports and Budgets - The company approved the 2024 financial settlement report, which objectively reflects its financial status, operating results, and cash flow [7]. - The 2025 financial budget report was deemed reasonable and feasible by the board [11]. - The company also approved the 2024 annual report and its summary, confirming compliance with legal regulations and accuracy of information [15][63]. Group 2: Profit Distribution - The company plans to distribute a cash dividend of RMB 1.66 per 10 shares (including tax) to all shareholders, with a total cash dividend amounting to approximately RMB 18.73 million [24][86]. - The profit distribution plan will be based on the total share capital after deducting shares held in the repurchase account [85]. Group 3: Independent Directors and Governance - The independent directors' performance report for 2024 was approved, highlighting their adherence to legal regulations and their role in protecting shareholder interests [5]. - The independence of the independent directors was confirmed, with no conflicts of interest identified [19]. Group 4: Internal Control and Asset Impairment - The company approved the 2024 internal control evaluation report, indicating effective internal control systems [21]. - The board also approved the proposal for asset impairment provisions for 2024, which aligns with accounting standards and reflects the company's operational realities [45]. Group 5: Related Party Transactions and Financing - The company approved the estimated amount for related party transactions for 2025, ensuring compliance with fair market principles [34][92]. - A proposal to authorize the board to handle small-scale rapid financing of up to RMB 300 million was also approved, pending shareholder approval [42][107]. Group 6: Stock Incentive Plan - The company decided to cancel 470,688 shares of unvested restricted stock from 69 incentive recipients due to not meeting performance targets [40][103].

Group 1 - The company plans to apply for a bank credit limit of up to 1 billion RMB for 2025, which can be used for various financing needs including working capital loans and project development loans [3][4][49] - The credit limit is subject to bank approval and can be reused within a maximum term of five years [3][4] - The actual financing amount will depend on the company's operational needs and will be determined based on actual transactions with the bank [4] Group 2 - The company intends to use idle self-owned funds for cash management, with a total investment limit of up to 1 billion RMB in low-risk financial products [7][8][10] - The investment aims to improve the efficiency and returns of idle funds while ensuring the company's normal operations are not affected [9][15] - The investment period will last from the approval date by the shareholders' meeting until the next annual shareholders' meeting in 2025 [11] Group 3 - The company has authorized the general manager to approve specific financing matters and amounts within the approved credit limit to enhance operational efficiency [4][52] - The board of directors has passed several resolutions, including the proposal for the use of idle funds and the application for bank credit, which will be submitted for shareholder approval [5][6][12][13]

Core Viewpoint - Chaoyang Technology (002981) has experienced a significant stock price fluctuation, with a cumulative increase of over 20% in closing prices over three consecutive trading days, indicating abnormal trading activity [1] Group 1: Stock Performance - The company's stock price has deviated significantly, with a cumulative increase exceeding 20% over three trading days, which is classified as abnormal stock trading behavior [1] - The company confirms that its recent operational conditions remain normal and that there have been no significant changes in the internal and external operating environment [1] Group 2: Financing Announcement - On April 8, 2025, the company disclosed an announcement regarding a request for shareholder meeting authorization for small-scale rapid financing [1] - The board of directors has proposed to authorize the issuance of ordinary shares to specific investors for financing purposes, with a total financing amount not exceeding RMB 300 million and not exceeding 20% of the net assets at the end of the most recent fiscal year [1] - This small-scale rapid financing initiative is subject to approval at the 2024 annual shareholder meeting [1]