Core Points - The document outlines the regulations for the behavior of the controlling shareholders and actual controllers of Suzhou Minxin Microelectronics Technology Co., Ltd, aiming to enhance corporate governance and compliance with relevant laws and regulations [1][2][3] Group 1: Definition and Scope - The term "controlling shareholder" refers to a shareholder holding more than 50% of the company's total share capital or having significant influence over shareholder meetings despite holding less than 50% [1] - The "actual controller" is defined as a natural person, legal entity, or organization that can control the company's actions through investment relationships or agreements, even if they are not a shareholder [1][2] Group 2: Principles of Conduct - Controlling shareholders and actual controllers must adhere to the principles of honesty and integrity, exercising their rights in a regulated manner and fulfilling commitments to protect the interests of the company and all shareholders [2][3] - They are prohibited from abusing their rights or harming the interests of the company and other shareholders through related transactions, profit distribution, asset restructuring, or external investments [2][3] Group 3: Company Independence - Controlling shareholders and actual controllers must maintain the company's independence, ensuring the integrity of assets, personnel, finances, institutions, and business operations [3][4] - They should not influence the company's asset integrity through shared production systems, business frameworks, or unfair use of company assets [4][5] Group 4: Information Disclosure - Controlling shareholders and actual controllers are required to fulfill information disclosure obligations, ensuring that disclosed information is truthful, accurate, complete, timely, and fair [6][7] - They must notify the company of significant events that could impact the company's securities trading prices, such as changes in control or major asset restructuring [7][8] Group 5: Share Trading and Control Transfer - When trading company shares, controlling shareholders and actual controllers must comply with relevant laws and regulations, ensuring fair information disclosure and avoiding insider trading [9][10] - They are restricted from reducing their shareholdings under certain conditions, such as during investigations for securities violations or when the company is facing significant legal issues [10][11] Group 6: Other Provisions - Controlling shareholders and actual controllers must consider the impact of their proposals on the company and other shareholders' interests [12][13] - They are responsible for ensuring that commitments made are effectively implemented and must provide guarantees for commitments with significant performance risks [12][13]

Core Viewpoint - The company has announced the provision for asset impairment, reflecting a cautious approach to accurately represent its financial status as of June 30, 2025 [1][4]. Summary by Sections Asset Impairment Provision Overview - The company conducted impairment testing on its assets as of June 30, 2025, in accordance with accounting standards, resulting in a total recognized asset impairment loss of 3,915,691.49 yuan for accounts receivable and other receivables [1][2]. Specifics of Asset Impairment Provision - The company assessed inventory for impairment based on the lower of cost and net realizable value, leading to the recognition of inventory write-downs when the cost exceeded the net realizable value [1][2]. - For long-term assets, including equity investments and fixed assets, the company estimated recoverable amounts and recognized impairment losses when necessary [2]. - The total amount of impairment losses recognized in this instance was 2,765,058.80 yuan [2][3]. - The company calculated expected credit losses for accounts receivable based on historical data and future economic forecasts, resulting in a credit impairment loss of 1,150,632.69 yuan [3]. Impact of Asset Impairment Provision - The total provision for asset impairment will be recorded under asset impairment losses and credit impairment losses, impacting the company's financial results [3]. Board and Supervisory Committee Opinions - The board of directors affirmed that the asset impairment provision complies with accounting standards and accurately reflects the company's financial condition and operational results as of June 30, 2025 [4]. - The supervisory committee also agreed with the board's assessment, confirming that the decision-making process adhered to legal requirements and did not harm the interests of shareholders, particularly minority shareholders [4].

Core Viewpoint - Anhui Xindong Lian Technology Co., Ltd. reported significant growth in its 2025 mid-year financial results, with substantial increases in revenue and net profit, indicating strong operational performance and potential for future growth [1][2]. Financial Performance - Total assets as of June 30, 2025, amounted to RMB 246,040.19 million, reflecting a 3.28% increase from the previous year [2]. - Operating revenue reached RMB 25,313.41 million, marking an 84.34% increase compared to RMB 13,731.95 million in the same period last year [2]. - Total profit for the period was RMB 15,432.25 million, which is a 173.37% increase from RMB 5,645.20 million year-on-year [2]. - Net profit attributable to shareholders was RMB 14,751.86 million, representing a 210.65% increase from RMB 4,748.66 million in the previous year [2]. Dividend Distribution - The company proposed a cash dividend of RMB 1.56 per 10 shares (including tax), with a total distribution amounting to RMB 62,511,642.96 (including tax) based on a total share capital of 400,715,660 shares as of June 30, 2025 [1].

Core Viewpoint - The company has approved the use of its own funds to pay for investment project expenses during the implementation period, with plans to replace these funds with raised capital later, ensuring efficient use of funds and compliance with regulations [5][7][8]. Fundraising Overview - The company has successfully issued 55.21 million shares at a price of 26.74 RMB per share, raising a total of 1,477.5 million RMB [1][2]. - All raised funds are stored in a special account approved by the board, with a tripartite supervision agreement in place [2]. Investment Projects and Fund Usage - The total investment for the projects is 100 million RMB, with the same amount planned to be funded by the raised capital [2][4]. - The company has decided to extend the implementation period and adjust the investment structure of some projects, including the addition of a new project for the development and industrialization of Inertial Measurement Units (IMU) [2][3]. Reasons for Using Own Funds - The company needs to use its own funds for certain expenses due to regulatory requirements, such as salary payments and taxes, which cannot be paid from the raised funds account [5][6]. - Using own funds for shared expenses like rent and utilities simplifies the payment process, as multiple projects share the same location [5][6]. Impact on the Company - The decision to use own funds and later replace them with raised funds is expected to enhance the efficiency of fund usage and reduce financial costs without affecting the normal implementation of investment projects [7][8]. Approval Process - The board and supervisory committee have reviewed and approved the proposal, confirming that it aligns with relevant regulations and does not alter the intended use of raised funds [7][8][9].

Fundraising Overview - The company, Anhui Xindong Lian Ke Micro System Co., Ltd., successfully raised a total of RMB 1,476.3154 million by issuing 55.21 million shares at a price of RMB 26.74 per share, with all funds received by June 27, 2023 [1][2] - The funds were deposited into a dedicated account for fundraising, which has been verified by Zhonghui Certified Public Accountants [1] Fund Management and Usage - The company established a fundraising management system in compliance with relevant laws and regulations to ensure proper management and usage of the raised funds, protecting investor interests [2] - The company and its subsidiary, Beijing Xindong Zhiyuan Microelectronics Technology Co., Ltd., adopted a dedicated account storage system for the raised funds, signing a tripartite supervision agreement with the sponsoring institution, CITIC Securities [2] Account Status - As of the announcement date, the company has opened several fundraising accounts with CITIC Bank and China Everbright Bank, with specific account numbers provided [3][4] - Two accounts have been closed due to the completion of the intended use of the funds, and the corresponding tripartite supervision agreements have been terminated [4]

Core Viewpoint - The company emphasizes the accuracy and completeness of its quarterly report, ensuring no false statements or omissions exist, and holds its board and management accountable for the report's content [2][3]. Financial Data - The quarterly financial report is not audited, and the company has provided key financial data in RMB [3][8]. - The company has identified non-recurring gains and losses, which are applicable for reporting [3]. Shareholder Information - The total number of ordinary shareholders and the situation of the top ten shareholders are disclosed, with a specific mention of a repurchase account holding 1,419,877 shares, accounting for 1.42% of the total share capital [4]. Regulatory Matters - The company received an administrative regulatory decision from the Sichuan Securities Regulatory Bureau on January 17, 2025, and has taken it seriously, implementing corrective measures [6][7]. - A special meeting was held to address the issues raised in the regulatory decision, and a report on the corrective actions was approved in subsequent board meetings [7]. Accounting Adjustments - The company has conducted a thorough review of revenue recognition issues mentioned in the regulatory decision and has made necessary corrections, which were approved in a board meeting on April 25, 2025 [7][9].