Announcement on the Launch of Financial Derivative Trading Business

Important Content Reminder:

1. Trading Overview:
   To effectively mitigate foreign exchange and interest rate risks and reasonably control the impact of exchange gains and losses on the company's operating performance, Shenzhen Kaizhong Precision Technology Co., Ltd. (hereinafter referred to as "the Company") and its wholly-owned subsidiaries plan to continue engaging in financial derivative trading aimed at foreign exchange hedging. This includes but is not limited to forward foreign exchange contracts, foreign exchange options, foreign exchange swaps, interest rate swaps, interest rate swaps, currency swaps, and combinations of the aforementioned products. The trading venues will be financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China, qualified to conduct forward foreign exchange trading. The maximum contract value held on any trading day for the foreign exchange financial derivative trading business conducted by the Company and its wholly-owned subsidiaries is expected not to exceed €60 million (or equivalent in other currencies), and the upper limit of the trading margin and premiums (including the value of collateral provided for trading, the expected credit limit from financial institutions, and the margin reserved for emergency measures) is not expected to exceed €5 million (or equivalent in other currencies). The validity period of the limit is 12 months from the date of approval by the board of directors, and the above limit can be used in a rolling manner within the validity period. If the duration of a single transaction exceeds the validity period of the limit, the validity period of that transaction will automatically extend until the termination of that transaction, but the limit for that transaction will be included in the calculation of the next approval validity period.

2. Review Procedures:
   This matter has been reviewed and approved by the 14th meeting of the 5th board of directors, the 3rd meeting of the audit committee of the 5th board of directors, and the 2nd special meeting of the independent directors of the 5th board of directors in 2026. This matter does not need to be submitted to the shareholders' meeting for review; it does not involve related party transactions.

3. Risk Warning:
   The Company is involved in a large number of foreign currency businesses in its daily operations. To reduce the impact of exchange rate fluctuations and interest rate fluctuations on the Company's operating performance, engaging in foreign exchange derivative trading for hedging purposes is beneficial for achieving the Company's stable operating goals. However, there may also be certain risks, including price fluctuation risk, internal control risk, liquidity risk, performance risk, and legal risk. Investors are advised to pay attention to investment risks.

1. Overview of Investment Situation

The Company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.