To continuously strengthen its compliance management capabilities and solidify the foundation for the company's green, high-quality development, on July 31,2026, the Rare Earth Resources Comprehensive Utilization Business Unit of Huahong Technology invited Senior Lawyer Guo Minghua from the Bank of China (Ganzhou) Law Firm to conduct a specialized training session titled "Environmental Law Enforcement and Compliance Management." The event was attended by relevant heads and staff members from all primary departments under the Business Unit, both online and in-person, marking the beginning of an in-depth learning initiative aimed at addressing regulatory compliance thresholds and reinforcing robust compliance practices.

01 Leadership Address

    Ms.Yao Li, Deputy General Manager and Chief Financial Officer of the Business Unit, emphasized in her address that environmental compliance efforts have now entered a new phase. With less than half a month remaining until the formal implementation of the Ecological and Environmental Protection Code of the People's Republic of China, the enactment of this code marks the beginning of an era of codified environmental governance in China, which will have a profound impact on corporate operations and production activities. She highlighted that this training session is designed to help participants stay abreast of the latest policy developments, clarify environmental compliance boundaries and thresholds, and effectively enhance their compliance awareness and risk prevention capabilities. She encouraged all participants to cherish this learning opportunity, listen attentively, engage in deep reflection, and translate the knowledge acquired into concrete actions to drive the company's green and high-quality development.

                                                                                              02 Expert-led lectures
    During the training session, Attorney Guo Minghua, leveraging his profound legal expertise and extensive practical experience, systematically outlined the new regulatory landscape emerging amid the impending implementation of the Ecological and Environmental Law Code, and provided an in-depth analysis of the challenging current environment for environmental protection enforcement as well as the core risks confronting enterprises. Focusing on the establishment of an environmental compliance system, Attorney Guo Minghua elaborated in detail on seven key processes for building an effective compliance management system. Starting with strategic leadership at the top management level, he emphasized that senior executives must genuinely embrace and implement compliance initiatives.

    Subsequently, Attorney Guo provided a comprehensive explanation of key aspects including risk identification and assessment, the establishment of management systems, the development of organizational structures, the creation of operational mechanisms, the cultivation of a compliance culture, and closed-loop management of non-compliance incidents. He emphasized that the core principle of compliance体系建设 is "keeping all actions documented" – enterprises must use written records—such as policy documents, training logs, and accounting records—to demonstrate that they have fulfilled their duty of reasonable care; this enables them to effectively prove the absence of subjective fault when facing regulatory accountability. Additionally, Attorney Guo noted that many companies currently suffer from a significant disconnect between "paper-based compliance" and actual business operations, as well as a lack of effective internal supervision and whistleblowing mechanisms, which makes it difficult for management to identify potential compliance risks in a timely manner—often forcing them to respond passively only after an incident has occurred.

    Compliance management serves as a solid foundation for achieving high-quality corporate development. We fully recognize that compliance should not be merely a "paper exercise" designed to pass inspections, but rather an inherent requirement for ensuring a company's long-term growth. Therefore, we are actively driving the transition from a "compliance-as-a-mandate" approach to a "compliance-as-a-strategy" mindset, seamlessly integrating environmental and regulatory compliance into our corporate development strategy, making it both a natural part of our daily operations and a competitive advantage.

    The successful delivery of this training session marks a significant milestone in the company's efforts to strengthen its environmental compliance capabilities. We look forward to all departments leveraging this training as an opportunity to transform their acquired knowledge and insights into a powerful driving force for implementing compliance measures, fortifying their respective defenses at work, and jointly building a bright future for Huahong Technology's sustainable development.