Important Content Reminder:
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Transaction Overview
To effectively mitigate exchange rate risks and other foreign exchange market risks in import and export operations, and to prevent significant fluctuations in exchange rates from adversely affecting the production, operation, and cost control of Zhejiang Hengwei Battery Co., Ltd. (hereinafter referred to as "the Company") and its subsidiaries, the Company and its subsidiaries plan to engage in foreign exchange hedging business with banks and other financial institutions. This aims to reduce the impact of exchange rate fluctuations on the Company's performance, reasonably lower financial costs, and enhance financial stability. The Company and its subsidiaries have decided to conduct foreign exchange hedging business totaling no more than RMB 400 million or its equivalent in foreign currency. -
Review Procedures
In accordance with the "Self-Regulatory Guidelines No. 7 for Listed Companies on the Shenzhen Stock Exchange - Transactions and Related Transactions," the foreign exchange hedging business has been reviewed and approved by the Audit Committee of the Company's third board of directors at its first meeting in 2026 and the fourteenth meeting of the third board of directors, and does not require submission to the shareholders' meeting for approval. -
Risk Warning
The foreign exchange hedging business conducted by the Company and its subsidiaries will adhere to the principles of legality, prudence, safety, and effectiveness, aiming to avoid and prevent exchange rate risks. However, there are certain credit risks, market risks, operational risks, etc., that investors should be aware of. The Company held the first meeting of the Audit Committee of the third board of directors and the fourteenth meeting of the third board of directors on March 20, 2026, where the proposal for the foreign exchange hedging business was approved, allowing the Company and its subsidiaries to conduct foreign exchange hedging business totaling no more than RMB 400 million or its equivalent in foreign currency. The Company and all members of the board guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions.