Shenzhen Great Wall Development Technology Co., Ltd. Feasibility Analysis Report on Conducting Financial Derivatives Trading Business I. Purpose and Necessity of Conducting Financial Derivatives Trading Business
| Shenzhen Great Wall Development Technology Co., Ltd. and its subsidiaries (hereinafter collectively referred to as the "Company")
| In its daily operations, the Company is involved in a large volume of import and export business, resulting in substantial foreign currency payment and receipt needs. Simultaneously, it also generates substantial US dollar assets such as inventory, accounts receivable, and prepayments. In recent years, influenced by international political and economic factors, exchange rate and interest rate fluctuations have increased significantly, leading to a substantial increase in foreign exchange market risks.
Therefore, the Company intends to lock in future import payment costs and export proceeds profits through financial derivatives trading. The aim is to reduce the adverse impact of exchange rate and interest rate fluctuations on the Company's profits, reduce exchange losses, lower financial expenses, mitigate exchange rate and interest rate fluctuation risks, and avoid the risk of US dollar asset depreciation. II. Overview of Financial Derivatives Trading
The company's financial derivatives trading mainly includes, but is not limited to, forward exchange settlement, foreign exchange swaps and their closing, and interest rate swaps. The company conducts financial derivatives trading based on its production and operation, and does not engage in speculative trading solely for profit. It effectively manages exchange rate risk and interest rate risk to ensure the steady development of its main business.