SG Micro boosts disclosure accountability and aims to prevent insider trading

SG Micro Corp has adopted a new accountability system for significant errors in annual report information disclosure, effective August 2025. This system aims to enhance the quality and transparency of annual reports by defining clear standards for identifying major accounting errors and other significant omissions. Key thresholds for these errors include discrepancies exceeding 5% of audited total assets, net assets, revenue, or profit, with absolute values over 10 million yuan for assets and 5 million yuan for net assets, revenue, or profit. The policy mandates that the board of directors, general manager, and board secretary bear primary responsibility for the accuracy, completeness, and timeliness of disclosures.

In conjunction with this, SG Micro Corp has also implemented an insider information knower registration and management system, also effective August 2025. This system aims to prevent insider trading and ensure the confidentiality of undisclosed sensitive information. It details the scope of insider information, identifies individuals categorized as insiders, and outlines procedures for registration, confidentiality agreements, and reporting. The policy also specifies that insider trading violations will result in internal disciplinary actions, with severe cases referred to judicial authorities.

These new policies underscore SG Micro Corp’s commitment to reinforcing internal controls, ensuring compliance with securities regulations, and maintaining fair and transparent operations in the market. The company will conduct internal training to educate staff on their obligations and the legal responsibilities associated with information disclosure and insider information.