Shanghai Stock Exchange issues an inquiry letter to Suqian Liansheng, requesting clarification on the feasibility of completing the construction of a production line for 120,000 pieces of 4-6 inch indium phosphide substrates within 10 months.

The Shanghai Stock Exchange issued an inquiry letter regarding the external investment matters of Suqian Liansheng Technology Co., Ltd., stating that the company plans to jointly invest 10 million yuan to establish a joint venture company engaged in the research and development, production, and sales of indium phosphide substrates. The Shanghai Stock Exchange requested the company to disclose the following supplementary information: 1. Specific arrangements for project construction, including progress in pre-construction approval, planning and construction permits, core equipment supply, etc., and whether it is feasible to complete the construction of a production line for 120,000 4-6 inch indium phosphide substrates within 10 months; 2. The specific arrangements for the company's and related shareholders' subsequent capital investment, whether the shareholders of the joint venture company have sufficient financial strength to ensure the smooth progress of the project, whether the company has formulated relevant risk prevention and control plans to prevent risks such as capital default by minority shareholders of the joint venture company; 3. In consideration of the company's main business operation and development strategy, explain the necessity and rationality of the company's large-scale cross-industry investment, how to ensure the capital security, management control, and integration with the company's existing business of the joint venture company, and whether it has any adverse impact on the company's continued operational capacity. Please provide full risk disclosure and the independent director's opinion. In addition, in conjunction with the specific reduction pace and progress of the shareholders' reduction plan, explain whether there is a situation of using information disclosure to cooperate with shareholders' reduction; in conjunction with the insider information holder registration and management system, explain the company's execution of the insider information registration and confidentiality measures for this investment, and conduct a self-inspection to see if there is any premature information disclosure.