Securities Code: 002042 Securities Abbreviation: Huafu Fashion Announcement No.: 2026-16 Huafu Fashion Co., Ltd. Announcement on the Planned Participation in Futures Hedging Transactions in 2026
The Board of Directors and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or major omissions.
I. Overview of the Company's Participation in Futures Hedging Transactions
Huafu Fashion Co., Ltd. (hereinafter referred to as the "Company") plans to conduct futures transactions for cotton and cotton yarn in 2026. Based on market and company operating conditions, the Company expects to conduct futures hedging transactions in 2026 with a maximum margin of RMB 1.5 billion. Funds can be used on a revolving basis within this limit. Hedged futures varieties: Contracts for cotton, cotton yarn, and off-exchange derivatives traded on the Zhengzhou Commodity Exchange that are related to the Company's production and operation. The aforementioned futures hedging transaction was reviewed and approved by the Ninth Board of Directors' Fourth Meeting of the Company held on April 28, 2026, with 9 votes in favor, 0 votes against, and 0 abstentions. This matter still needs to be submitted for review by the Company's shareholders' meeting. The validity period is 12 months from the date the shareholders' meeting approves this matter.
II. Necessity and Feasibility of the Company's Participation in Futures Hedging Transactions