Important Content Reminder:
- Purpose of Trading: To effectively avoid and prevent exchange rate risks, reduce the impact of exchange rate fluctuations on the company's operations, improve the efficiency of foreign exchange fund usage, lock in exchange costs, and enhance the company's financial stability, the company and its subsidiaries plan to engage in foreign exchange derivative trading.
- Overview of Trading: The company and its subsidiaries plan to conduct foreign exchange derivative trading not exceeding $20 million (or equivalent in other currencies), with an expected maximum margin and premium (including the value of collateral provided for trading, anticipated credit limits from financial institutions, and reserved margin for emergency measures) not exceeding 5 million RMB (or equivalent foreign currency). The trading products include forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, or combinations of these products; the trading venue will be qualified financial institutions authorized to conduct foreign exchange derivative trading.
- Review Procedure: This matter has been reviewed and approved by the 14th meeting of the 4th Board of Directors of the company, and does not require submission to the shareholders' meeting for approval as it falls within the board's approval authority.
- Risk Warning: The company and its subsidiaries will conduct foreign exchange derivative trading in accordance with the principles of legality, prudence, safety, and effectiveness, avoiding speculative and arbitrage trading operations. However, there are still certain market risks, liquidity risks, performance risks, and legal risks associated with foreign exchange derivative trading, and investors are advised to be aware of investment risks.
The Board of Directors of Kaile Environmental Technology (Shanghai) Co., Ltd. (hereinafter referred to as "the Company") held the 14th meeting of the 4th Board of Directors on June 1, 2026, and approved the proposal on the launch of foreign exchange derivative trading business, agreeing to use up to $20 million (or equivalent in other currencies) of its own funds for foreign exchange derivative trading. The expected maximum margin and premium (including the value of collateral provided for trading, anticipated credit limits from financial institutions, and reserved margin for emergency measures) will not exceed 5 million RMB (or equivalent foreign currency); the limit is valid for 12 months from the date of approval by the Board of Directors and can be used repeatedly within this period. This matter does not constitute a related party transaction. The relevant matters are announced as follows: