After Receiving The Letter Of Progress, We Will Pay Attention To The Supervision Of The Project

On August 24, Shenzhen Haide Stock Exchange (hereinafter referred to as Haide stock exchange) issued the regulatory code of Shenzhen Haide new stock exchange on August 24. Prior to this, Shenzhen Stock Exchange had issued a letter of concern to hailide on the violation.

According to the regulatory letter, in the morning of August 10, 2020, hailide replied to investors on the "interactive easy" platform that "the production capacity of Vietnam's 110000 tons industrial filament project will be gradually put into production in four stages before the end of next year" and "Vietnam's export to the United States, the European Union, Japan, South Korea and India has relevant tax advantages". On the same day, hailide's stock price fluctuated abnormally.

On the evening of August 10, hailide disclosed the announcement on abnormal fluctuation of stock price (hereinafter referred to as the "change announcement") that hailide was informed on August 6, 2020 that the industrial filament Vietnam (phase I) project was successfully put into operation, and the capacity of subsequent Vietnam projects will be gradually put into production in four batches before the end of next year. Hailide's reply on the progress of the above Vietnam Project on the "interactive easy" platform is earlier than the disclosure time of the "change announcement".

The above behavior of hailide violates the provisions of articles 2.1, 2.7, 2.8 and 2.15 of the Listing Rules of Shenzhen Stock Exchange (revised in November 2018). Shenzhen stock exchange requires the board of directors of hailide to pay full attention to the above problems, draw lessons from them, rectify them in time, and put an end to the recurrence of the above problems.

In fact, the illegal disclosure of project progress by hailide has long attracted the attention of Shenzhen Stock Exchange, and issued a letter of concern to hailid on August 13.

According to the follow-up letter, on August 7 and August 10, 2020, hailide's share price was continuously up and down. On August 11, hailide disclosed the above "change announcement". Shenzhen Stock Exchange expressed concern about this and asked hailide to explain and disclose the following issues:

1. In the morning of August 10, hailide replied to investors on the "interactive easy" platform that the production capacity of the Vietnam project will be gradually put into production in four times by the end of next year, and Vietnam's export to the United States, the European Union, Japan, South Korea and India has relevant tax advantages. Please add whether the above items meet the disclosure standard of interim report, whether hailide has replaced the temporary announcement with the reply of interactive easy platform, whether it actively caters to market hot spots and speculates on the company's stock price, and whether it violates the principle of fair information disclosure.

2. Please explain whether there is any information leakage or insider trading in the above investment progress by combining the source of notice, confidentiality and recent changes of hailide's share price. Please report the list of relevant insiders and their immediate relatives, and the stock trading self inspection report, and explain the controlling shareholders and shareholders holding more than 5% shares of hailide in the next three months The plan to lift the restrictions and reduce the shares held by directors, supervisors and senior executives.

3. Other matters that hailide thinks should be explained.

The Shenzhen Stock Exchange said that hailide should make a written explanation on the above issues, submit the relevant explanatory materials to the management department of small and medium board companies and disclose them to the public before August 17, 2020, and copy them to the listed company supervision department of Zhejiang securities regulatory bureau.

In this regard, hailide postponed to August 21 to reply to the concern letter, saying that the company had no intention to actively cater to the market hot spots and speculate on the company's share price. However, due to the company's insufficient judgment on the impact of Vietnam project's production on the stock price, it failed to timely announce the above situation; At the same time, due to the lack of grasp of relevant laws and regulations, the interactive easy response time is earlier than the temporary announcement, which has caused adverse impact on the market. The Company Apologizes for this.