Securities Code: 300759
Securities Abbreviation: Kanglong Chemical
Announcement Number: 2026-013
Kanglong Chemical (Beijing) New Drug Technology Co., Ltd. announces the estimated trading quota for hedging products in 2026.
Important Content Reminder:
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Purpose, Types, and Amount of Transactions: To hedge against the risks of foreign currency exchange rate fluctuations, Kanglong Chemical (Beijing) New Drug Technology Co., Ltd. (hereinafter referred to as "the Company") and its subsidiaries plan to continue engaging in hedging product transactions (forward foreign exchange business, swap business, foreign exchange options, and other financial derivatives). Based on the Company's export revenue, scale of overseas operations, overseas financing situation, and industry practices, the Company and its subsidiaries estimate that the trading quota for hedging products in 2026 will be $1.8 billion or equivalent foreign currency. This trading quota can be reused within the trading period, and the transaction amount at any point during the trading period (including amounts related to the reinvestment of profits from hedging product transactions) shall not exceed this quota.
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Review Procedures: On March 30, 2026, the Company held the 19th meeting of the third board of directors, which approved the proposal on the estimated trading quota for hedging products in 2026. This matter still needs to be submitted to the shareholders' meeting for review.
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Risk Warning: The Company adheres to the principle of prudence, ensuring that all hedging activities are based on normal production and operations, relying on specific business activities to avoid and prevent exchange rate risks. However, engaging in hedging activities also carries certain risks, and investors are advised to pay attention to investment risks. The Company and all members of the board guarantee that the content of this information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.
I. Overview of Hedging Products for 2026
- Investment Purpose: Given the Company's significant international business and the considerable fluctuations in the exchange rates of foreign currencies such as the US dollar against the RMB in recent years, which have impacted the Company's financial condition, it is necessary to hedge against the risks of foreign currency exchange rate fluctuations. This will help prevent adverse effects from significant exchange rate fluctuations, improve capital efficiency, and enhance financial stability. The Company and its subsidiaries will fully utilize hedging tools to reduce exchange losses and mitigate the risks of foreign exchange market rate fluctuations.
The Company has established the "Management System for Futures and Derivatives Trading," which clarifies the responsibilities of the finance department, internal control and audit department, securities affairs department, and subsidiaries in supervising hedging product transactions before, during, and after the process. Professional personnel have been assigned to the hedging business, and all cooperating institutions are reputable financial institutions with stringent risk control measures. The targeted risk control measures taken by the Company are practical, and engaging in hedging activities is feasible. Without affecting the development of the Company's main business and while reasonably arranging the use of funds, the Company and its subsidiaries plan to conduct foreign exchange hedging product transactions opportunistically. The types of hedging products include: forward foreign exchange business, swap business, foreign exchange options, and other financial derivatives, with the main foreign currency being the US dollar.