Guangdong Xianglu Tungsten Industry Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, without false records, misleading statements, or significant omissions.
Important Content Reminder:
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Purpose, Types, and Amount of Transactions:
In accordance with the development strategy and business growth of Guangdong Xianglu Tungsten Industry Co., Ltd., to further mitigate foreign exchange market risks, the Company and its controlling subsidiaries plan to conduct foreign exchange hedging business with banks and other financial institutions. This is beneficial for reducing the adverse effects of exchange rate fluctuations on the Company's production operations and cost control, thereby minimizing exchange losses. The scale of the foreign exchange hedging business planned by the Company will not exceed $50 million or equivalent in other currencies. Funds within this limit can be recycled, and the transaction amount at any point during the transaction period (including amounts related to the reinvestment of the proceeds from the aforementioned transactions) will not exceed this limit. The foreign exchange hedging business will be conducted in the form of bank credit, margin, or option fees with banks and other financial institutions qualified for foreign exchange derivative trading. -
Review Procedure:
On March 31, 2026, the Company held the second extraordinary meeting of the fifth Board of Directors in 2026, which approved the proposal on conducting foreign exchange hedging business. -
Risk Warning:
The Company adheres to the principle of prudence, and all hedging activities are based on normal production and operations, relying on specific business activities to avoid and prevent exchange rate risks. However, there are certain risks associated with hedging activities, and investors are advised to be aware of investment risks.
I. Purpose of Conducting Foreign Exchange Hedging Business
To further mitigate foreign exchange market risks, the Company and its controlling subsidiaries plan to conduct foreign exchange hedging business with banks and other financial institutions, which is beneficial for reducing the adverse effects of exchange rate fluctuations on the Company's production operations and cost control, thereby minimizing exchange losses.
II. Overview of Foreign Exchange Hedging Business
- Main Currencies and Business Types:
The foreign exchange hedging business of the Company and its controlling subsidiaries is limited to currencies used in the main settlement of the Company's production operations and international investment and financing activities, primarily involving currencies such as the US dollar. The types of foreign exchange hedging business conducted by the Company include but are not limited to forward foreign exchange settlements, foreign exchange swaps, foreign exchange futures, foreign exchange options, and other foreign exchange derivative products.