Feasibility Analysis Report on Developing Foreign Exchange Derivative Trading Business

Hanvon Technology Co., Ltd.

Feasibility Analysis Report on Developing Foreign Exchange Derivative Trading Business

I. Background of Developing Foreign Exchange Derivative Trading Business

The company's overseas business revenue accounted for nearly 50% of its total operating revenue in the most recent audited period, and existing foreign currency assets accounted for over 20% of its net assets. To hedge against and prevent foreign exchange market volatility risks and reasonably control exchange rate gains and losses, Hanvon Technology Co., Ltd. (hereinafter referred to as the "Company") and its holding subsidiaries plan to use their own funds to prudently develop foreign exchange derivative trading business opportunistically.

II. Overview of Developing Foreign Exchange Derivative Trading Business

1. Trading Purpose: To hedge against and prevent foreign exchange market volatility risks and reasonably control exchange rate gains and losses, the Company will opportunistically and prudently develop foreign exchange derivative trading business, fully utilizing the hedging function of foreign exchange derivatives to reduce the impact of exchange rate and interest rate fluctuations on the Company's operating performance. The Company's development of derivative trading is not speculative and will not affect the development of its main business. The selection of foreign exchange derivative trading instruments will be based on the Company's business and capital planning needs, choosing appropriate foreign exchange trading varieties and instruments, which are expected to effectively control exchange rate and interest rate risk exposure.

2. Trading Amount and Period: The Company and its holding subsidiaries anticipate that the maximum outstanding contract amount for foreign exchange derivative trading business will not exceed USD 30 million (or equivalent in other currencies). The maximum transaction margin and option premium (including collateral provided for the transaction, estimated credit lines from financial institutions, and margin reserved for contingency measures) will not exceed USD 30 million or its equivalent in other currencies. Funds within this limit can be used repeatedly within the authorized period. The period of authorization is 12 months from the date of approval by the shareholders' meeting. The outstanding contract amount at any point within the authorization period shall not exceed the authorized amount.