Announcement Number: 2026-015
Yizumi Co., Ltd. Announcement on Using Own Funds for Foreign Exchange Financial Derivative Hedging
The company and the entire board of directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or material omissions.
Key Information Prompt:
- Transaction Overview: To effectively hedge against foreign exchange market risks, prevent adverse impacts from significant exchange rate fluctuations, improve the efficiency of foreign exchange fund utilization, reasonably reduce financial expenses, increase exchange gains, and lock in exchange costs, the company and its holding subsidiaries plan to use their own funds to conduct foreign exchange financial derivative hedging transactions with a total amount not exceeding RMB 500 million. The transaction amount at any point in time within the transaction period will not exceed the aforementioned amount, and the quota can be used cyclically within the approved range. The types of financial derivatives to be used in this hedging plan include, but are not limited to, foreign exchange forwards, foreign exchange swaps, foreign exchange options, structured forwards, interest rate swaps, interest rate options, and currency swaps. The financial derivative hedging business to be undertaken by the company is a simple financial derivative hedging business closely related to its core business.
- Deliberation Procedures: The company and its holding subsidiaries have already obtained approval from the company's Fifth Board of Directors' Thirteenth Meeting for the plan to conduct foreign exchange financial derivative investments. This matter is within the scope of the board of directors' approval authority and does not require submission to the shareholders' meeting for deliberation.
- Risk Warning: The company and its holding subsidiaries will conduct foreign exchange financial derivative investments in accordance with legal, prudent, safe, and sound principles, relying on actual business operations and not engaging in speculative transactions. However, during the transaction process, market risks, liquidity risks, performance risks, and internal control risks still exist. Investors are kindly requested to pay attention to investment risks.
Yizumi Co., Ltd. (hereinafter referred to as the "Company") held its Fifth Board of Directors' Thirteenth Meeting on April 15, 2026, which deliberated and approved the "Proposal on Using Own Funds for Foreign Exchange Financial Derivative Hedging." This announcement is hereby made regarding relevant matters:
I. Purpose of Conducting Foreign Exchange Financial Derivative Investment
Given that the company and its subsidiaries hold a large amount of foreign exchange assets, to effectively hedge against foreign exchange market risks and prevent adverse impacts from significant exchange rate fluctuations, improve the efficiency of foreign exchange fund utilization, reasonably reduce financial expenses, increase exchange gains, and lock in exchange costs, the company and its subsidiaries plan to use their own funds, matching the scale of their international business revenue, to conduct foreign exchange financial derivative hedging.
II. Types of Foreign Exchange Financial Derivative Investments