002300SZSE

Announcement on Carrying Out Commodity Futures Hedging Business

Sun Cable Co., Ltd.·

✨ AI Summary

Fujian Nanping Sun Cable Co., Ltd. will conduct commodity futures hedging for copper and aluminum to mitigate price fluctuation risks. The company plans to use up to RMB 150 million in margin, sourced from its own funds, for hedging activities over 12 months. This initiative aims to stabilize production costs and will be managed under a strict internal control system.

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Securities Code: 002300 Securities Abbreviation: Sun Cable Announcement No.: 2026-020

Fujian Nanping Sun Cable Co., Ltd. Announcement on Carrying Out Commodity Futures Hedging Business

The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.

Fujian Nanping Sun Cable Co., Ltd. (hereinafter referred to as the "Company") held the Fifth Meeting of the Eleventh Board of Directors on April 8, 2026, and deliberated and passed the "Proposal on Carrying Out Commodity Futures Hedging Business." It was agreed that the Company would carry out commodity futures hedging business to prevent operating risks caused by significant fluctuations in the prices of major raw materials (copper and aluminum). The specific details are as follows:

I. Overview of Hedging Business

  1. Investment Objective The Company's main products are wire and cable. The main raw materials (copper and aluminum) account for about 80% of the production cost and have a high unit value. To hedge against the uncertainty risks brought by drastic fluctuations in copper and aluminum prices to the Company's production and operation, and to ensure the smooth and orderly progress of daily production and operation, the Company needs to lock in relatively favorable prices for raw materials in advance in the commodity futures market through hedging in the futures and spot markets, and carry out hedging business.

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