I. Background of the Company's Derivative Trading Business
As Jiangxi Ganfeng Lithium Co., Ltd. (hereinafter referred to as "the Company") advances its global layout, its overseas industrial investments are gradually increasing. The Company and its subsidiaries intend to moderately engage in derivative trading to reduce market volatility risks associated with cross-border investments and enhance financial stability.
II. Basic Information on the Company's Derivative Trading Business
-
Transaction Amount: Within the validity period of the authorization, the proposed trading margin and premiums will not exceed RMB 4 billion (or equivalent foreign currency), and the maximum contract value held on any trading day will not exceed RMB 4 billion (or equivalent foreign currency). The usage period for this amount is within 12 months from the date of approval by the shareholders' meeting (hereinafter referred to as "the period"). The above amount can be used in a rolling manner within the period. The Company’s chairman or their designated authorized agent is authorized to sign relevant agreements within this limit.
-
Trading Method: The Company will conduct derivative investments in a timely, moderate, and prudent manner without affecting normal operations. The trading products will be financial derivatives (including but not limited to options and forward products), linked to underlying assets including the Company’s stock assets. Trading methods include but are not limited to using structured options to lock in stock values. Counterparties will be limited to financially sound and reputable financial institutions, which are expected to have no related party relationships with the Company.