Securities Code: 002408 Bond Code: 128128 Securities Abbreviation: Qixiang Tengda Bond Abbreviation: Qixiang Zhuan 2 Announcement Number: 2026-010 Zibo Qixiang Tengda Chemical Co., Ltd. Announcement on Carrying Out Forward Foreign Exchange Derivative Business in 2026 The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and contains no false records, misleading statements, or major omissions. Key Information Prompt:
- Zibo Qixiang Tengda Chemical Co., Ltd. (hereinafter referred to as the "Company") plans to carry out forward foreign exchange derivative business to effectively hedge against foreign exchange market risks and prevent adverse impacts from significant exchange rate fluctuations on the Company's operations. The main foreign currency types include USD, etc. The business types include, but are not limited to, forward settlement and sales, structured forwards, foreign exchange swaps, foreign exchange futures, foreign exchange options, and other foreign exchange derivative products. The transaction venue will be financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China with the qualification for forward foreign exchange derivative business. The transaction amount at any point in time shall not exceed USD 30 million or its equivalent in foreign currency.
- On April 8, 2026, the Company held the 28th meeting of the 6th Board of Directors, which deliberated and approved the "Proposal on Carrying Out Forward Foreign Exchange Derivative Business in 2026".
- The Company and its subsidiaries will carry out forward foreign exchange derivative business to effectively hedge against and prevent foreign exchange market risks, and avoid adverse impacts of exchange rate fluctuations on the operations of the Company and its subsidiaries. The Company and its subsidiaries will not engage in forward foreign exchange derivative transactions for speculative purposes. However, this business still carries certain risks, and investors are advised to pay attention. On April 8, 2026, the 28th meeting of the 6th Board of Directors of the Company deliberated and approved the "Proposal on Carrying Out Forward Foreign Exchange Derivative Business in 2026". The Company and its subsidiaries plan to carry out forward foreign exchange derivative business in 2026. The specific details are as follows: I. Overview of Forward Foreign Exchange Transaction Business (I) Purpose of Transactions With the expansion of the Company's business scope and the advancement of its global strategic layout, overseas business has grown significantly, and the scale of foreign exchange receipts and payments has continued to increase. To effectively hedge against foreign exchange market risks, prevent adverse impacts of significant exchange rate fluctuations on the Company's operations, and improve the efficiency of foreign exchange fund utilization, the Company and its subsidiaries plan to carry out forward foreign exchange derivative business in 2026 to strengthen foreign exchange risk management and meet the Company's needs for stable operations. (II) Transaction Amount The forward foreign exchange derivative business to be carried out by the Company and its subsidiaries will have a maximum contract value (i.e., transaction fund limit) of no more than USD 30 million or its equivalent in foreign currency held on any trading day. This limit can be used cyclically within the approval period, and the balance held at any point in time (including related amounts from prior transaction gains) shall not exceed the aforementioned limit. (III) Source of Funds The transaction funds will come from the Company and its subsidiaries' own funds. There is no direct or indirect use of raised funds for this business. (IV) Transaction Method The Company and its subsidiaries will conduct forward foreign exchange derivative transactions with financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China that have the qualification for forward foreign exchange derivative business. The forward foreign exchange derivative transactions of the Company and its subsidiaries will be limited to currencies that are the same as the main settlement currencies used in the production and operation of the Company and its subsidiaries. The main foreign currency types include USD, etc. The types of forward foreign exchange derivative business include, but are not limited to, forward settlement and sales, structured forwards, foreign exchange swaps, foreign exchange futures, foreign exchange options, and other foreign exchange derivative products. (V) Transaction Period and Authorization Matters The Board of Directors authorizes the management of the Company and its subsidiaries to handle relevant matters concerning the forward foreign exchange derivative transactions within the limit of USD 30 million or its equivalent in foreign currency, based on their own business plans and funding arrangements. The authorization period is 12 months from the date of approval by the Board of Directors. If the duration of a single transaction exceeds the authorization period, the authorization will be automatically extended until the termination of that transaction, and the amount of that transaction will be included in the calculation of the next approval period. II. Deliberation Procedures On April 8, 2026, the 28th meeting of the 6th Board of Directors of the Company deliberated and approved the "Proposal on Carrying Out Forward Foreign Exchange Derivative Business in 2026". This proposal is within the scope of the Board of Directors' approval authority and does not require submission to the shareholders' meeting for deliberation. III. Risks of Forward Foreign Exchange Transaction Business and Measures to be Taken by the Company (I) The Company and its subsidiaries carrying out forward foreign exchange derivative business can reduce the impact of exchange rate fluctuations on the Company and its subsidiaries when exchange rates fluctuate significantly, but this business also carries certain risks:
- Exchange Rate Fluctuation Risk: If the trend of foreign exchange rates deviates significantly from the Company's and its subsidiaries' judgment of the exchange rate fluctuation direction, and the forward settlement and sales rate stipulated in the forward settlement and sales confirmation letter is lower than the spot rate, it will result in exchange losses.
- Internal Control Risk: Forward foreign exchange derivative transactions are highly specialized and complex, which may lead to risks due to imperfect internal control systems.
- Transaction Default Risk: If the counterparty in the forward foreign exchange derivative transaction defaults and cannot pay the hedging profit to the Company and its subsidiaries as agreed, making it impossible to hedge the actual exchange losses of the Company and its subsidiaries, it will result in losses for the Company and its subsidiaries.
- Collection Forecast Risk: The Company and its subsidiaries forecast payments and collections based on purchase orders, customer orders, and anticipated orders. However, during the actual execution, customers may adjust their orders and forecasts, leading to inaccurate collection forecasts for the Company and its subsidiaries, and causing the risk of delayed delivery for the forward foreign exchange derivative transactions already undertaken by the Company and its subsidiaries. (II) Measures Taken by the Company
- Adhere to the principle of locking exchange rate risk and hedging, and do not engage in speculative or arbitrage trading. When signing contracts, strictly conduct transactions according to the Company's and its subsidiaries' forecasted collection deadlines and amounts.
- Select foreign exchange derivative transactions with simple structures, strong liquidity, and fixed-income type low risks. Select banks and other financial institutions with qualifications and high creditworthiness as transaction counterparties.
- Personnel involved in the foreign exchange derivative business of the Company and its subsidiaries shall strengthen their study and training on the characteristics and risks of forward foreign exchange derivative transactions, strictly implement the operational and risk management systems for forward foreign exchange derivative transactions, and the authorized departments and personnel shall closely monitor and analyze market trends, continuously track changes in the public market prices or fair values of forward foreign exchange, promptly assess changes in the risk exposure of forward foreign exchange derivative transactions, and adjust operational strategies in a timely manner based on market conditions to improve hedging effectiveness.
- The Company has formulated the "Management System for Hedging Business of Commodity Futures and Derivatives," which clearly stipulates the operating principles, approval authorities, responsible departments and personnel, internal operating procedures, internal risk reporting system, and risk handling procedures for the Company and its subsidiaries to carry out forward foreign exchange derivative transactions, thereby effectively controlling transaction risks.
- The Company's Legal and Audit Department will conduct regular compliance checks on forward foreign exchange derivative transactions. IV. Accounting Principles for Carrying Out Forward Foreign Exchange Transactions The Company will perform corresponding accounting and disclosure for forward foreign exchange locking transactions in accordance with the provisions and guidelines of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments," "Accounting Standards for Business Enterprises No. 24 - Hedging Accounting," and "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments." V. Documents for Inspection
- Resolution of the 28th meeting of the 6th Board of Directors of Zibo Qixiang Tengda Chemical Co., Ltd.
- "Feasibility Analysis Report on Carrying Out Forward Foreign Exchange Derivative Business." Hereby announced. Zibo Qixiang Tengda Chemical Co., Ltd. Board of Directors April 10, 2026