Core Viewpoint - The stock of Honghe Electronic Materials Technology Co., Ltd. has experienced significant price fluctuations, with a cumulative increase of over 20% in three consecutive trading days, prompting a warning for investors regarding market risks [2][4]. Group 1: Stock Trading Abnormalities - The company's stock price deviated significantly, with a cumulative increase exceeding 20% on July 3, 4, and 7, 2025, indicating abnormal trading behavior [2][4]. - On July 8, 2025, the stock price hit the daily limit again, marking two consecutive days of limit-up trading, which raises concerns about short-term price volatility [2][4]. Group 2: Business Operations - As of the announcement date, the company's main business activities, which include the research, production, and sales of mid-to-high-end electronic-grade glass fiber cloth and yarn, have not undergone significant changes, and operations are normal [5][9]. - The company has confirmed that there are no undisclosed major events affecting stock trading fluctuations [3][9]. Group 3: Market Perception and Risks - The company has been associated with the "PCB concept" in media reports, as its main product, electronic-grade glass fiber cloth, is a fundamental material for PCBs. However, the company emphasizes that its core business remains unchanged [6][9]. - The company has not identified any media reports or market rumors that require clarification, and it warns investors to be cautious of speculative trading based on market trends [6][9]. Group 4: Insider Trading - During the period of abnormal stock trading, the company's directors, supervisors, senior management, and controlling shareholders did not engage in buying or selling the company's stock [7].

Investment Overview - The company has signed a project investment contract with the Huangshi Economic Development Zone government to invest in a new high-performance fiberglass yarn production line project, with an estimated investment amount of approximately RMB 720 million [1][2] - The investment will be carried out through the company's wholly-owned subsidiary, Huangshi Honghe Electronic Materials Co., Ltd [1] Progress Update - The company has recently completed the signing of the project investment contract with the Huangshi Iron District government and the Huangshi Economic and Technological Development Zone Management Committee [2] - Any significant changes or progress in the investment project will be disclosed in accordance with the relevant regulations [2]

General Principles - The company establishes a system for the deferral and exemption of information disclosure to ensure compliance with legal obligations under the Securities Law and relevant regulations [2][3] - The system applies to both the company and other information disclosure obligors, allowing for deferral or exemption of disclosures required by the China Securities Regulatory Commission and the Shanghai Stock Exchange [2][3] Applicable Situations for Deferral and Exemption - The company must carefully determine the circumstances under which information disclosure can be deferred or exempted, following internal review procedures [3][4] - Deferral or exemption is permitted if the information involves state secrets or other matters that could violate confidentiality regulations [3][4] - Information related to commercial secrets can also be deferred or exempted if it meets specific criteria, such as potential harm to the company or others if disclosed [3][4] Internal Management Process for Deferral and Exemption - The company’s board secretary is responsible for organizing and coordinating deferral and exemption matters under the board's leadership [5][6] - A detailed registration process is required for any deferral or exemption, including the type of information and the reasons for deferral [5][6] - The company must maintain records of deferral and exemption decisions for a period of ten years [5][6] Accountability and Compliance - The company has established a mechanism for accountability regarding deferral and exemption practices, holding responsible parties accountable for non-compliance [6][7] - Any deferral or exemption must be disclosed promptly once the reasons for deferral are no longer applicable [4][6]

General Principles - The purpose of the rules is to standardize the decision-making process of the board of directors and improve work efficiency and scientific decision-making levels [2] - The board of directors is the decision-making body responsible for the company's development goals and major operational activities [2] Board Powers - The board has the authority to convene shareholder meetings and report work to shareholders [6] - It decides on the company's operational plans, investment schemes, profit distribution plans, and loss compensation plans [6] - The board is responsible for major acquisitions, stock repurchases, mergers, and changes in company structure [6] Board Committees - The board establishes specialized committees such as the Strategy Committee, Audit Committee, Nomination Committee, and Compensation and Assessment Committee [3] - Independent directors must constitute the majority in the Audit, Nomination, and Compensation Committees [3] Chairman's Powers - The chairman presides over shareholder meetings and board meetings, supervises the execution of board resolutions, and has other powers granted by the board [8] Meeting Procedures - The board must hold at least two regular meetings each year [11] - Notice for regular meetings must be sent 10 days in advance, while temporary meetings can be called within 5 days [12][13] - A quorum requires the presence of more than half of the directors [18] Voting and Decision-Making - Resolutions require approval from more than half of the directors present [27] - Directors must avoid conflicts of interest and may need to abstain from voting on related matters [28] Record Keeping - Meeting records must include the date, location, attendees, agenda, and voting results [34] - The board secretary is responsible for maintaining meeting archives for ten years [39] Amendments and Effectiveness - The rules can be amended based on changes in actual circumstances and require approval from the board and shareholders [42][43]

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]