Hangzhou Hongquan Internet of Things Technology Co., Ltd. Announcement on Abnormal Fluctuations in Stock Trading

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2026-04-01 23:05:27

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Stock Code: 688288 Stock Short Name: Hongquan Technology Announcement No.: 2026-007

Hangzhou Hongquan Internet of Things Technology Co., Ltd.

Announcement on Abnormal Stock Trading Volatility

The board of directors of this company and all of its directors warrant that there are no false records, misleading statements, or material omissions in the contents of this announcement, and they assume legal responsibility in accordance with law for the truthfulness, accuracy, and completeness of the content.

Key Matters to Note:

● Hangzhou Hongquan Internet of Things Technology Co., Ltd. (hereinafter referred to as Hongquan Technology or the Company) has, within three consecutive trading days (March 27, 2026, March 30, 2026, and March 31, 2026), the closing price’s cumulative deviation from the rise in excess of 30%. According to the relevant provisions of the《Trading Rules of the Shanghai Stock Exchange》and the《Real-time Monitoring Measures for Abnormal Stock Trading of the STAR Market Stocks on the Shanghai Stock Exchange》, this falls under the circumstances of abnormal stock trading volatility.

● After the Company’s self-examination, and upon sending inquiries to the Company’s controlling shareholder and actual controller, as of the date of disclosure of this announcement, the Company, its controlling shareholder, and actual controller have no major matters that could affect the Company’s abnormal stock trading volatility, nor is there any other material information that should be disclosed but has not been disclosed.

● The Company mainly provides in-vehicle terminal products and services such as intelligent connected systems and intelligent cockpits for commercial vehicles and passenger vehicles. The Company’s two-wheeler business mainly provides customers with terminal products including intelligent instrument clusters, intelligent connected systems, controllers, etc., as well as networked management services such as a data management platform and mobile apps like cell-phone APPs. However, at present, revenue from the two-wheeler business accounts for a relatively small proportion of the Company’s operating revenue, and does not constitute a major impact on the Company’s operating performance. The two-wheeler industry currently faces fierce competition and fast technology iteration. At the same time, original equipment manufacturers (OEMs) are relatively sensitive to the costs of components. The industry may face potential risks such as technology iteration, intensifying market competition, annual product price reductions, and changes in the supply-and-demand landscape. Investors are kindly requested to make rational investments and pay attention to investment risks.

● As of March 31, 2026, the closing price of the Company is 30.60 yuan per share; the latest trailing price-to-earnings ratio is 103.80 times. The computer, communication, and other electronic equipment manufacturing industry in which the Company operates has an average trailing price-to-earnings ratio of 52.78 times over the past month. The Company’s price-to-earnings ratio is significantly higher than the industry’s level. Investors are kindly requested to pay attention to investment risks, make rational decisions, and invest prudently.

I. Specific Circumstances of Abnormal Stock Trading Volatility

Within three consecutive trading days (March 27, 2026, March 30, 2026, and March 31, 2026), Hangzhou Hongquan Internet of Things Technology Co., Ltd. (hereinafter referred to as Hongquan Technology or the Company) has a cumulative deviation in the closing price’s percentage increase of more than 30%. According to the relevant provisions of the《Trading Rules of the Shanghai Stock Exchange》and the《Real-time Monitoring Measures for Abnormal Stock Trading of the STAR Market Stocks on the Shanghai Stock Exchange》, this falls under the circumstances of abnormal stock trading volatility.

II. Related Circumstances the Company Has Looked Into and Verified

According to the relevant provisions of the Shanghai Stock Exchange, the Company has conducted the necessary verification on the related issues. The Company hereby explains as follows:

Production and Operation

After the Company’s self-examination, as of the date of disclosure of this announcement, the Company’s production and operation activities are normal, the main business has not undergone any material changes, and the internal and external operating environment has not undergone any major changes.

Major Matters

After the Company’s self-examination, and upon written verification with the Company’s controlling shareholder and actual controller, as of the date of disclosure of this announcement, the Company has no major matters that should be disclosed but have not been disclosed, including but not limited to material matters involving planning mergers and acquisitions and restructuring, share issuance, debt restructuring, business restructuring, asset stripping, and asset injection, etc.

Other Price-Sensitive Information

As of the date of disclosure of this announcement, the Company has not found other major events that may have a significant impact on the Company’s stock price. During the period of the Company’s abnormal stock trading volatility, there have been no instances of trading the Company’s shares by the Company’s controlling shareholder and actual controller or by the Company’s directors and senior management.

III. Statement by the Board of Directors

The board of directors of this Company confirms that, except for the matters already disclosed in accordance with relevant requirements, the Company currently has no matters that should be disclosed but have not been disclosed under provisions such as the《Listing Rules for STAR Market Stocks of the Shanghai Stock Exchange》, nor any planning or intentions related to such matters. The board of directors has also not become aware of any information under provisions such as the《Listing Rules for STAR Market Stocks of the Shanghai Stock Exchange》that should be disclosed but has not been disclosed, and which may have a significant impact on the trading price of the Company’s stock and its derivative instruments.

IV. Related Risk Disclosures

(I) The Company will, in accordance with relevant laws and regulations such as the《Company Law of the People’s Republic of China》and the《Securities Law of the People’s Republic of China》, truly, accurately, promptly, fully, and fairly disclose to investors major information that may affect the Company’s stock price, so that investors can make investment judgments. Due to limitations of objective conditions, the Company cannot掌握 the reasons and trends of changes in the stock market. The Company reminds investors to pay attention to stock price fluctuations and the risks that may be involved in future stock market movements.

(II) The Company mainly provides in-vehicle terminal products and services such as intelligent connected systems and intelligent cockpits for commercial vehicles and passenger vehicles. The Company’s two-wheeler business mainly provides customers with terminals including intelligent instrument clusters, intelligent connected systems, controllers, etc., as well as networked management services such as a data management platform and mobile apps like cell-phone APPs. However, at present, revenue from the two-wheeler business accounts for a relatively small proportion of the Company’s operating revenue, and does not constitute a major impact on the Company’s operating performance. The two-wheeler industry currently faces fierce competition, and technology iteration is fast. At the same time, OEMs are relatively sensitive to the costs of components. The industry may face potential risks such as technology iteration, intensifying market competition, annual product price reductions, and changes in the supply-and-demand landscape. Investors are kindly requested to make rational investments and pay attention to investment risks.

(III) As of March 31, 2026, the closing price of the Company is 30.60 yuan per share; the latest trailing price-to-earnings ratio is 103.80 times. The computer, communication, and other electronic equipment manufacturing industry in which the Company operates has an average trailing price-to-earnings ratio of 52.78 times over the past month. The Company’s price-to-earnings ratio is significantly higher than the industry’s level. Investors are kindly requested to pay attention to investment risks, make rational decisions, and invest prudently.

(IV) The Company hereby earnestly reminds investors that《Shanghai Securities News》is the Company’s designated information disclosure newspaper, and the website of the Shanghai Stock Exchange (www.sse.com.cn) is the Company’s designated information disclosure website. All information of the Company shall be subject to the information published on the above designated media. Investors are kindly requested to make rational investments and pay attention to investment risks.

V. Attachments to Be Published on the Website

Reply to the Inquiry Letter on Abnormal Stock Trading Volatility of《Hangzhou Hongquan Internet of Things Technology Co., Ltd.》

This announcement is hereby issued.

Board of Directors of Hangzhou Hongquan Internet of Things Technology Co., Ltd.

April 1, 2026

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