Sunwoda Electronic Co., Ltd.
Special Report on Securities and Derivatives Investment in 2025
In accordance with the "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 2 - Normative Operation of the GEM" and "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Guidance No. 1 - Business Handling" and other relevant regulations, the Board of Directors of Sunwoda Electronic Co., Ltd. (hereinafter referred to as "Sunwoda" or "the Company") has reviewed the Company's securities and derivatives investment situation in 2025. The relevant情况 is hereby explained as follows:
I. Review and Approval of Securities and Derivatives Investment
(1) Securities Investment
The Company held the 15th meeting of the 6th Board of Directors and the 15th meeting of the 6th Supervisory Board on February 12, 2025, and deliberated and passed the "Proposal on Using Idle Own Funds for Securities Investment in 2025". To align with the Company's long-term business development needs, promote global strategic layout, and ensure the supply of key industry resources, the Company will invest in high-quality listed companies within the industry chain, both domestically and internationally, through securities investment. While ensuring that the Company's normal operations are not affected, it is planned to use no more than RMB 300 million (inclusive) of idle own funds for securities investment.
(2) Derivatives Investment
The Company held the 15th meeting of the 6th Board of Directors, the 15th meeting of the 6th Supervisory Board on February 12, 2025, and the 2nd extraordinary general meeting of shareholders on March 6, 2025, and deliberated and passed the "Proposal on the Company's Hedging Business". To hedge against the risks of foreign exchange and raw material markets and mitigate the impact of exchange rate and raw material price fluctuations, the Company and its subsidiaries plan to conduct derivatives trading business for hedging purposes. Among them: (1) The Company and its subsidiaries plan to use an amount not exceeding the equivalent of RMB 33 billion or other foreign currency amounts for foreign exchange hedging business. The maximum contract value held on any trading day is expected not to exceed the equivalent of RMB 31 billion or other foreign currency amounts. Foreign exchange hedging products include, but are not limited to, forward settlement and sales, foreign exchange swaps, foreign exchange options, interest rate swaps, foreign exchange futures, currency swaps, and combinations of the above products. (2) The Company and its subsidiaries plan to conduct commodity hedging business with a maximum margin amount not exceeding RMB 250 million or the equivalent of other foreign currency amounts (excluding the physical delivery payment of futures underlying assets), and the maximum contract value held on any trading day is expected not to exceed RMB 2.4 billion or the equivalent of other foreign currency amounts. Commodity hedging products are limited to futures and derivatives related to copper foil, aluminum foil, nickel sulfate, lithium carbonate, and lithium hydroxide, which are directly related to the Company and its subsidiaries' production and operation.
II. Securities and Derivatives Investment Situation of the Company in 2025
(1) Securities Investment Situation
The Company confirmed the profit and loss situation of its outstanding securities investments during the reporting period. During the reporting period, the fair value change gains recognized were RMB 64,370,213.84, and the investment income recognized was -1,182,697.58 RMB, with a total income of RMB 63,187,516.26.
(2) Derivatives Investment Situation