The company and its board of directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or major omissions.
Key Information Prompt:
- To hedge against foreign exchange market risks and prevent the impact of significant exchange rate fluctuations on the company's performance, the company and its subsidiaries plan to engage in foreign exchange derivative transactions, including but not limited to forward settlement and sales, currency swaps, currency options, and interest rate swaps, either as single products or combinations thereof, with a total not exceeding USD 20 million.
- In accordance with the "Shenzhen Stock Exchange GEM Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 7 - Transactions and Connected Transactions," and the "Articles of Association," this foreign exchange derivative transaction business has been reviewed and approved by the company's board of directors and does not require shareholder approval.
- During the process of engaging in foreign exchange derivative transactions, there are risks such as exchange rate fluctuation risk, internal control risk, liquidity risk, and transaction default risk. Investors are kindly reminded to pay attention to investment risks.
Ningbo Henghe Precision Industrial Co., Ltd. (hereinafter referred to as "the Company") held the ninth meeting of the fifth board of directors on April 8, 2026. The meeting reviewed and approved the "Proposal on the Company and Its Subsidiaries Engaging in Foreign Exchange Derivative Transactions." It was agreed that the company would engage in foreign exchange derivative transactions according to the needs of its business development, mainly including forward settlement and sales, currency swaps, currency options, and interest rate swaps, either as single products or combinations of structured financial instruments. The total amount of foreign exchange derivative transactions that the company and its subsidiaries plan to engage in shall not exceed USD 20 million. The transaction period is valid for one year from the date of approval by the board of directors. The relevant matters are hereby announced as follows:
I. Overview of Engaging in Foreign Exchange Derivative Transactions
- Purpose of Engaging in Foreign Exchange Derivative Transactions The company's import and export business is mainly settled in US dollars. Significant and continuous exchange rate fluctuations may have a considerable impact on the company's operating performance. To effectively hedge and prevent potential exchange rate risks arising from the company's import and export business, the company will engage in foreign exchange derivative transactions with banks and other financial institutions to improve the efficiency of foreign exchange fund utilization and reduce financial expenses, thereby mitigating the adverse effects of exchange rate fluctuations.