Guolian MinSheng Securities Underwriting and Sponsorship Co., Ltd.
Review Opinion on Guangzhou Guanghe Technology Co., Ltd.'s Increase in Foreign Exchange Hedging Business Quota
Guolian MinSheng Securities Underwriting and Sponsorship Co., Ltd. (hereinafter referred to as the "Sponsor") is the sponsor for the initial public offering of Guangzhou Guanghe Technology Co., Ltd. (hereinafter referred to as "Guanghe Technology" or the "Company") on the main board. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "Shenzhen Stock Exchange Stock Listing Rules," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Norms for Operation of Main Board Listed Companies," among other relevant regulations, the Sponsor has reviewed the matter of Guanghe Technology increasing its foreign exchange hedging business quota and hereby issues the following review opinion:
I. Overview of Foreign Exchange Hedging Business
(I) Basic Situation of the Previous Foreign Exchange Hedging Business Quota
On March 27, 2026, the Company held its 23rd meeting of the Second Board of Directors, which deliberated and approved the "Proposal on Carrying Out Foreign Exchange Hedging Business." It was agreed that the Company and its subsidiaries would use their own funds or self-raised funds to carry out foreign exchange hedging business with a scale not exceeding USD 500 million, which can be used on a revolving basis. This proposal was approved by the Company's 2025 Annual Shareholders' Meeting.
(II) Basic Situation of the Proposed Increase in Hedging Business Quota
Given the increasing volatility in the foreign exchange market, to effectively hedge against foreign exchange market risks, prevent adverse impacts from significant exchange rate fluctuations, and enhance the Company's financial stability, the Company held its first meeting of the Third Board of Directors on June 18, 2026. It deliberated and approved the "Proposal on Increasing the Foreign Exchange Hedging Business Quota." It was agreed that the Company would increase its foreign exchange hedging business quota by no more than USD 700 million. After this increase, the Company's total foreign exchange hedging business quota will not exceed USD 1.2 billion, and the quota can be used on a revolving basis. This matter of increasing the foreign exchange hedging business quota still needs to be submitted to the Company's Shareholders' Meeting for deliberation.
II. Basic Situation of Carrying Out Foreign Exchange Hedging Business
(I) Purpose of Foreign Exchange Hedging Business