Core Viewpoint - The document outlines the management system for fund transactions between Honghe Electronic Materials Technology Co., Ltd. and its related parties, aiming to prevent fund occupation by related parties and protect the rights of the company and its stakeholders [1][2]. Group 1: General Principles - The system is established to regulate fund transactions with controlling shareholders, actual controllers, and other related parties to avoid fund occupation [1]. - The system applies to both the company and its subsidiaries included in the consolidated financial statements [1]. - Fund occupation includes both operational and non-operational fund occupation [2]. Group 2: Prevention Principles and Regulations - The company must prevent related parties from occupying funds and resources, and cannot advance payments for wages, benefits, or other expenses on behalf of related parties [5]. - Related transactions must be settled promptly to avoid abnormal operational fund occupation [6]. - The company is prohibited from providing funds to related parties through various means, including advancing expenses or borrowing funds [7]. Group 3: Payment Procedures - The board of directors and senior management are responsible for maintaining the safety of company funds and assets [10]. - The chairman of the board is the primary responsible person for preventing fund occupation, while the general manager and financial officer have direct responsibilities [11]. - Payments to related parties must follow approved agreements and decision-making procedures [12][13]. Group 4: Accountability and Penalties - Directors and senior management have an obligation to protect company funds from being occupied by related parties, with penalties for those who facilitate such actions [18]. - Funds occupied by related parties should generally be repaid in cash, with strict controls on non-cash repayments [19]. - Non-operational fund occupation that negatively impacts the company will result in administrative and economic penalties for responsible individuals [20].

Group 1 - The core viewpoint of the article is that a misunderstanding occurred regarding the nature of a shipment seized by Nanning Customs, which was incorrectly identified as rare earth materials when it was actually solder paste containing bismuth [1][2]. Group 2 - On March 18, a company declared a shipment of 600 kilograms of solder paste for export to Thailand, labeled as "low-temperature solder paste" and "tin-bismuth alloy" for electronic welding purposes [1]. - The bismuth content in the solder paste was found to be 55.3%, and bismuth is classified as a nitrogen group element, not a rare earth element [1]. - Due to regulations, the export of goods containing bismuth requires an export license, which the company could not provide, leading to customs withholding the shipment [2].

Core Viewpoint - Recent misinformation regarding a company's export of solder paste as rare earth materials has been clarified by Nanning Customs, confirming that the product is not classified as rare earth and requires specific export permits [1] Group 1: Company Details - A company declared an export shipment of 600 kilograms of solder paste to Thailand on March 18, with the outer packaging labeled as "low-temperature solder paste" and the inner packaging indicating "tin-bismuth alloy" [1] - The solder paste contains a bismuth content of 55.3%, which is classified as a nitrogen group element and does not fall under the category of rare earth materials [1] Group 2: Regulatory Compliance - The export of the bismuth-containing product necessitates the acquisition of an export license from regulatory authorities [1] - The company was unable to provide the required export documentation, leading to customs withholding the shipment [1]

Fundraising Overview - The company raised a total of RMB 1,168,299,971.40 by issuing 248,574,462 shares at a price of RMB 4.70 per share, with a net amount of RMB 1,154,144,584.29 after deducting fees [2] - The funds were received on September 28, 2023, and the verification report was issued by Tianzhi International Accounting Firm [2] Fund Management and Storage - The company has established a management system for fundraising in compliance with relevant laws and regulations, ensuring dedicated storage and usage of the funds [3] - A total of seven dedicated bank accounts have been opened for the storage of the raised funds, which are not to be used for other purposes [4] Fund Supervision Agreements - The company has signed multiple tripartite and quadripartite agreements with its sponsor and banks to ensure proper management and supervision of the raised funds [5][6] - These agreements outline the responsibilities and obligations of the company, the sponsor, and the banks involved in the fund management [6] Fund Account Closure - As of March 31, 2025, the company has completed the closure of certain fundraising accounts after the funds were fully utilized, aiming to reduce management costs [7] - The termination of related supervision agreements occurred following the closure of these accounts [7]