I. Background of Conducting Foreign Exchange Hedging Business
Yongdian Group Dongci Co., Ltd. (hereinafter referred to as "the Company") continues to enhance its international market expansion, with an increasing proportion of exports. Consequently, significant fluctuations in exchange rates can greatly impact the Company's operating performance. Currently, the main currencies for export settlements are the Euro, US Dollar, and Japanese Yen. To mitigate the exchange rate risks faced during production and operations, the Company plans to conduct foreign exchange hedging, with the overall trading scale matching the Company's actual business size to maintain stable profit levels and focus on production and operations.