Core Viewpoint - The report indicates that Zhejiang Weihua New Materials Co., Ltd. has undergone a thorough on-site inspection by CITIC Securities, confirming that the company operates in compliance with relevant regulations and has a well-structured governance system, although it faces challenges in profitability due to market conditions [1][6]. Summary by Sections On-site Inspection Overview - CITIC Securities conducted an on-site inspection of Zhejiang Weihua New Materials on March 20, 2025, as part of its ongoing supervisory responsibilities [1]. Company Governance and Internal Control - The inspection found that the company's governance structure and internal control systems are complete and compliant, with effective execution of internal controls and proper functioning of the board and committees [2]. Information Disclosure - The company’s disclosure documents were found to be accurate and complete, with no discrepancies noted between disclosed information and actual circumstances [3]. Independence and Related Party Transactions - The company has established measures to prevent the misuse of funds by controlling shareholders and related parties, ensuring that there are no violations regarding the use of company resources [4]. Use of Raised Funds - The inspection confirmed that the management of raised funds complies with regulations, with no evidence of misappropriation by controlling shareholders or unauthorized changes in fund usage [5]. Related Transactions and Major Investments - The company has adhered to regulations regarding related transactions, external guarantees, and significant investments, with no major violations or harm to minority shareholders identified [5]. Operating Conditions - The company’s operational model remains stable; however, it is experiencing significant price declines in its main products due to industry cyclicality and increased competition, impacting profitability [6]. Recommendations - The report advises the company to focus on its core business and maintain prudent operations while addressing the reasons for the anticipated decline in performance [6]. Reporting Obligations - The inspection concluded that there are no matters that require reporting to the China Securities Regulatory Commission or the Shanghai Stock Exchange [6]. Cooperation with Intermediaries - The company provided active cooperation during the inspection, facilitating the process without the involvement of other intermediaries [6]. Conclusion of the Inspection - Overall, the inspection affirmed that the company’s operations align with the requirements of the Shanghai Stock Exchange and relevant laws and regulations [6].