002394SZSE

Announcement on Carrying Out Foreign Exchange Hedging Business

Lianfa Co., Ltd.·

✨ AI Summary

Jiangsu Lianfa Textile Co., Ltd. announced its plan to conduct foreign exchange hedging business to mitigate foreign exchange risks and reduce settlement costs. The business will involve up to USD 50 million or equivalent, with funds being rolled over. The proposal requires shareholder approval and will be managed by the company's financial department. The company aims to prevent adverse impacts from exchange rate fluctuations on its operations.

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Securities Code: 002394 Securities Abbreviation: Lianfa股份 Announcement No.: LF2026-009

Jiangsu Lianfa Textile Co., Ltd. Announcement on Carrying Out Foreign Exchange Hedging Business

The Company and the Board of Directors guarantee the authenticity, accuracy, and completeness of the information disclosed in this announcement, and that there are no false records, misleading statements, or material omissions.

Jiangsu Lianfa Textile Co., Ltd. (hereinafter referred to as the "Company") held the third meeting of its seventh Board of Directors on April 22, 2026, and reviewed and approved the "Proposal on Carrying Out Foreign Exchange Hedging Business." To hedge against foreign exchange market risks, reduce foreign exchange settlement costs, and prevent adverse impacts of exchange rate fluctuations on the Company's production and operation and cost control, the Company (including its wholly-owned subsidiaries and controlled subsidiaries) is permitted to conduct foreign exchange hedging business with its own funds. The business scale shall not exceed USD 50 million or the equivalent in other foreign currencies, and the validity period shall be within 12 months from the date of approval by the 2025 Annual General Meeting of Shareholders.

In accordance with the "Shenzhen Stock Exchange Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guide No. 1 - Standardized Operation of Main Board Listed Companies," and the Company's Articles of Association, this proposal needs to be submitted to the 2025 Annual General Meeting of Shareholders for review. The relevant matters are hereby announced as follows:

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