Important Notes, Directory, and Definitions
The Board of Directors and senior management of the company guarantee that the content of the annual report is true, accurate, and complete, with no false records, misleading statements, or significant omissions, and bear individual and joint legal responsibility. The responsible person Lin Rongsheng, the head of accounting Zhao Qian, and the head of the accounting institution (accounting supervisor) Zhang Huiying declare: they ensure the truthfulness, accuracy, and completeness of the financial report in this annual report. All directors have attended the board meeting to review this report.
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Specific reasons for the loss: During the reporting period, the company's product sales gross profit margin was low, and the gross profit amount could not cover the period expenses. At the same time, the newly established subsidiary Sun High-Tech incurred an operating loss of 7.3932 million yuan, affecting the company's net profit.
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The main business, core competitiveness, and major financial indicators have not undergone significant adverse changes and are consistent with industry trends. As of now, the company's operating situation is normal, and various businesses are progressing steadily. The company will continue to deepen its main business, increase product sales efforts, strengthen technological R&D, ensure product quality, carefully optimize product formulas, and accelerate the R&D and launch of new products to adapt to rapid market changes and customer demands.
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The wire and cable industry is one of the main supporting industries for national economic development, widely applied in various aspects of the national economy, closely related to the development of the national economy and people's daily lives. The company's main product line, polymer materials for cables, is in the intermediate link of the wire and cable industry chain and is one of the main raw materials besides metal conductors and optical fibers, serving functions such as insulation, shielding, and protection. The "14th Five-Year Plan" proposes to accelerate the construction of a new energy system, continuously increase the proportion of new energy supply, promote the safe and orderly replacement of fossil energy, focus on building a new power system, and strengthen the energy nation; accelerate the construction of smart grids and microgrids; improve the electrification level of terminal energy use, and promote green and low-carbon energy consumption. The "14th Five-Year Plan" promotes the quality upgrade of key industries, consolidating and enhancing the position and competitiveness of industries such as mining, metallurgy, chemicals, light industry, textiles, machinery, shipbuilding, and construction in the global industrial division of labor. This will provide many opportunities for the wire and cable industry and new development opportunities for the polymer materials industry.
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There are no significant risks to the company's ability to continue as a going concern.
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On August 8, 2025, Donghang Group, Jurong Weiye, Hu Min, and Jurong Energy (Xinjiang) Co., Ltd. signed the "Share Transfer Agreement of Hangzhou Gaoxin Materials Technology Co., Ltd.", agreeing that Donghang Group would transfer 24,105,872 shares (19.03% of the total share capital of the listed company) to Jurong Weiye through an agreement transfer. On September 3, 2025, the company received the "Securities Transfer Registration Confirmation" issued by China Securities Depository and Clearing Corporation Limited, confirming that the share transfer was completed on September 2, 2025. The company's control has changed, with the controlling shareholder changing from Donghang Group to Jurong Weiye, and the actual controller changing from Mr. Hu Min to Mr. Lin Rongsheng. Any content in this report related to future plans does not constitute a substantive commitment to investors; investors and related parties should maintain sufficient risk awareness and understand the differences between plans, forecasts, and commitments. The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves.