002394SZSE

Announcement on Carrying Out Commodity Futures and Options Hedging Business

Lianfa Co., Ltd.·

✨ AI Summary

Jiangsu Lianfa Textile Co., Ltd. announced its plan to conduct commodity futures and options hedging business, primarily for cotton futures and options, with an investment of no more than RMB 50 million. The purpose is to mitigate the impact of raw material price fluctuations on production and sales, control operational risks, and utilize the hedging function of futures and options. The business will be conducted with the company's own funds and is subject to shareholder approval.

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Securities Code: 002394 Securities Abbreviation: Lianfa股份 Announcement No.: LF2026-010

Jiangsu Lianfa Textile Co., Ltd. Announcement on Carrying Out Commodity Futures and Options Hedging Business

The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the disclosed information, and that there are no false records, misleading statements, or major omissions.

Jiangsu Lianfa Textile Co., Ltd. (hereinafter referred to as the "Company") held the third meeting of the seventh Board of Directors on April 22, 2026, and deliberated and passed the "Proposal on Carrying Out Commodity Futures and Options Hedging Business." To hedge against the adverse effects of raw material price fluctuations on the company's production and sales, control operational risks, and fully utilize the hedging function of futures and options, it is agreed that the Company and its subsidiaries will carry out commodity futures and options hedging business with their own funds. The investment scale (margin) for cotton futures and options hedging business shall not exceed RMB 50 million, and the term shall be valid for 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-Regulation Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and the Company's Articles of Association, this proposal still needs to be submitted for deliberation at the 2025 Annual General Meeting of Shareholders. The relevant situation is hereby announced as follows:

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