Siyuan Electric Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, without false records, misleading statements, or significant omissions.
On June 3, 2026, the 29th meeting of the 8th Board of Directors of Siyuan Electric Co., Ltd. reviewed and approved the "Resolution on Conducting Commodity Futures Hedging Business." According to the Company's "Management System for Commodity Futures Hedging Business," the Company is authorized to use its own funds to conduct copper futures hedging and lithium carbonate futures hedging. The margin balance occupied by the Company during the business period shall not exceed RMB 100 million (including RMB 100 million, with each of the copper and lithium carbonate futures margin balances being RMB 50 million (including), but excluding the full margin paid for positions during the delivery period). The relevant matters are announced as follows:
I. Overview of Hedging Business
1.1 Purpose and Necessity:
The Company's main business is the research, development, production, sales, and service of power distribution equipment, with copper and lithium carbonate being one of the main raw materials. To reduce the impact of price fluctuations of copper and lithium carbonate on costs, the Company conducts copper futures hedging and lithium carbonate futures hedging primarily to lock in product costs, effectively prevent and resolve cost fluctuations caused by price changes in copper and lithium carbonate, and ensure profit realization.
1.2 Investment Amount:
The margin balance occupied by the Company during the business period shall not exceed RMB 100 million (including RMB 100 million, with each of the copper and lithium carbonate futures margin balances being RMB 50 million (including), but excluding the full margin paid for positions during the delivery period).
1.3 Investment Method:
The futures hedging business conducted by the Company is limited to copper futures contracts and lithium carbonate futures contracts traded on domestic futures exchanges.
1.4 Investment Duration:
From the date of approval by the Board of Directors until June 3, 2027.
1.5 Source of Funds:
The Company's own funds.
1.6 Implementation Process:
The Board of Directors authorizes the Company's futures leadership team as the management body for the futures hedging business and operates according to the relevant regulations and processes established in the Company's "Management System for Commodity Futures Hedging Business."