002001SZSE

Announcement on Carrying Out Foreign Exchange Hedging Business

Zhejiang NHU Co., Ltd.·

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Zhejiang Sun & New Chemical Material Co., Ltd. announces its board's approval to conduct foreign exchange hedging business up to RMB 5 billion to mitigate exchange rate risks impacting its export business. The business will be based on actual production and investment needs, with strict internal controls and risk management measures in place. The authorization is valid for 12 months.

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Securities Code: 002001 Securities Abbreviation: Sun & New Announcement No.: 2026-011

Zhejiang Sun & New Chemical Material Co., Ltd.

Announcement on Carrying Out Foreign Exchange Hedging Business

The Company and the Board of Directors guarantee the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or significant omissions.

Zhejiang Sun & New Chemical Material Co., Ltd. (hereinafter referred to as the "Company") held the 18th meeting of the 9th Board of Directors on April 14, 2026, and deliberated and approved the "Proposal on Carrying Out Foreign Exchange Hedging Business." It was agreed that the Company and its wholly-owned subsidiary would carry out foreign exchange hedging business with a scale not exceeding RMB 5 billion or its equivalent in foreign currency. The specific details are as follows:

I. Purpose of Carrying Out Foreign Exchange Hedging Business

In 2025, the Company's export business accounted for approximately 58.11% of its total operating revenue. Settlements are mainly made in foreign currencies such as USD and EUR. When exchange rates fluctuate significantly, exchange gains and losses will have a certain impact on the Company's operating performance. The Company will carry out foreign exchange hedging business on the principle of exchange rate risk neutrality, which is conducive to controlling exchange rate fluctuation risks and reducing the impact of exchange rate fluctuations on the Company's operations.

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