Announcement on the Response to the Shenzhen Stock Exchange's Inquiry Letter
The company and all members of the board guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or major omissions.
Harbin Indium Target New Materials Co., Ltd. (hereinafter referred to as "the Company") received an inquiry letter from the Shenzhen Stock Exchange (hereinafter referred to as "SZSE") on May 13, 2026, requiring the Company to provide a written explanation and disclose it publicly, while also sending a copy to the Heilongjiang Securities Regulatory Bureau's Listed Company Supervision Department. The Company attaches great importance to the inquiry letter and immediately organized relevant departments to carefully verify and implement the issues involved. The relevant situation is now responded to as follows:
Special Reminder:
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Recently, the Company's stock price has experienced significant fluctuations due to market sentiment and speculative activities. Some market views have excessively interpreted the Company's new business development, asset injection, name change, and market capitalization growth after valuation reconstruction, which deviate significantly from the Company's current actual performance. The Company's stock price has seriously detached from its current performance, with the latest price-to-book ratio significantly higher than the industry average, which is in serious contradiction with the Company's continuous losses and the fact that its main business has not formed stable profitability. There is a risk of significant stock price fluctuations, rapid declines, and valuation returns in the future. Investors are urged to abandon speculative attitudes and rationally view the Company's development status and valuation level, making prudent decisions and paying attention to investment risks.
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The Company's target material business is still in the repair and recovery stage of the acquired production line and has not officially started production, nor has it generated relevant operating income and profits. Currently, the competitive landscape of the ITO target material industry has matured, with multiple domestic and foreign manufacturers possessing mature production technology, stable customer channels, and large-scale production capacity. Downstream customers in the target material business have strict requirements for product purity, density, and other core indicators, establishing a rigorous supplier access and product verification system. Even if the Company produces ITO target material products, they will require a long market verification period, and there is significant uncertainty in market development and order acquisition. The future profitability of the Company's target material business faces considerable market challenges. Investors are urged to rationally view related matters, make prudent decisions, and pay attention to investment risks.
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According to the Company's "Reorganization Plan," the industrial investor has committed to initiating the asset injection process of Xinyuan Environmental Technology Co., Ltd. (hereinafter referred to as "Xinyuan Technology") by December 31, 2025. The Company has exceeded the deadline for completing the reorganization plan formulation. Due to prior administrative penalties, the Company expects that it will not be able to implement asset injection through stock issuance within three years and can only use cash; however, the Company's funds are limited, and it plans to acquire in batches, facing the risk of not completing the entire asset injection before December 31, 2027, and also facing uncertainties such as approval and valuation negotiations. There are multiple uncertainties regarding this asset injection, and market rumors about the Company forming a global monopoly on indium resources are significantly exaggerated. Investors are urged to pay attention to related risks.