Securities Code: 002345 Securities Abbreviation: CHAO HONG JI Announcement Number: 2026-011
Guangdong Chao Hong Ji Industrial Co., Ltd. Announcement on the Company and its Subsidiaries Carrying Out Gold Inventory Hedging Business in 2026
The Company and the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or significant omissions.
Guangdong Chao Hong Ji Industrial Co., Ltd. (hereinafter referred to as the "Company") held the Eighth Meeting of the Seventh Board of Directors on March 26, 2026, and reviewed and approved the "Proposal on the Company and its Subsidiaries Carrying Out Gold Inventory Hedging Business in 2026". This proposal needs to be submitted to the Company's shareholders' meeting for review. The relevant matters are hereby announced as follows:
I. Purpose of Carrying Out Gold Inventory Hedging Business
The Company and its subsidiaries will conduct hedging on gold inventory. This will primarily involve using Shanghai Gold Exchange deferred delivery business, gold futures trading tools from futures companies, and gold leasing, among other hedging tools that can achieve the same hedging purpose. The objective is to hedge against the risk of a significant drop in gold prices, which could lead to the net realizable value of gold inventory falling below its inventory cost.
II. Products for Gold Inventory Hedging Business
The gold inventory of the Company and its subsidiaries is significantly affected by gold price fluctuations. To mitigate the adverse impact of significant gold price fluctuations on the Company's operations, the Company plans to conduct hedging operations using Shanghai Gold Exchange deferred delivery business, gold futures trading tools from futures companies, and gold leasing, among other hedging tools that can achieve the same hedging purpose. This will effectively manage the risks brought about by significant gold price fluctuations.