Hongbai New Materials Says High-Purity Silicon Tetrachloride Project Has Zero Capacity and Has Not Started Construction

Hongbai New Materials said its shares showed abnormal trading after the cumulative deviation in closing-price gains exceeded 20% over two consecutive trading days. According to Jin10, the company said it had previously disclosed an announcement on adjustments and changes to the use of proceeds for certain fundraising investment projects, including a project involving 20,000 tons of high-purity silicon tetrachloride and 5,000 tons of electronic-grade tetraethyl orthosilicate. The company said the project currently has zero production capacity and construction has not yet begun. Hongbai New Materials said the project faces risks including failure to obtain required administrative pre-approvals, industrial policy controls, slow progress in the construction schedule, incomplete process technology, and the possibility that it may not achieve expected returns.