Important Content Reminder:
- Purpose of the Transaction:
Hangzhou Heshun Technology Co., Ltd. (hereinafter referred to as "the Company") is a core producer of BOPET films. The stability of its supply chain for key raw materials, such as polyester chips (PET) and functional additives (e.g., masterbatches), directly impacts its production operations. Given that the production of polyester chips relies on key raw materials, purified terephthalic acid (PTA) and ethylene glycol (MEG), whose prices are influenced by fluctuations in the oil market, geopolitical risks, and capacity cycle mismatches, there is significant price volatility risk. The Company intends to procure PTA and MEG through targeted purchases and entrust Zhejiang Zhixiang New Materials Co., Ltd. to process polyester chips, forming a closed-loop industrial chain from basic chemical raw materials to finished film products. This model can accurately match the production needs of BOPET films and reduce losses in intermediate links. Therefore, due to production needs, the Company requires a large amount of PTA and MEG for entrusted processing to form polyester chip raw materials, and fluctuations in raw material prices may impact the Company's operations. To stabilize operations and better hedge against the risks posed by price fluctuations of key raw materials, the Company plans to utilize the domestic futures market solely for commodity futures hedging, without engaging in speculation or arbitrage trading. - Transaction Varieties:
Limited to PTA and MEG futures contracts traded on domestic futures exchanges related to the Company's production operations. - Transaction Amount:
The maximum amount of margin utilized for the Company's commodity futures hedging business shall not exceed RMB 30 million (i.e., not exceeding this amount at any point in time) and may be recycled within the authorization period. - Review Procedures:
The Company held the 12th meeting of the 4th Board of Directors on March 30, 2026, where the proposal for conducting futures hedging business for the year 2026 was approved. This matter is subject to shareholder meeting review. The Company and all members of the Board of Directors guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or major omissions. - Special Risk Reminder:
The Company and its subsidiaries engage in futures trading for hedging purposes, which is beneficial for stabilizing normal production operations. However, there are also risks such as price volatility risk, funding risk, internal control risk, technical risk, and policy risk. The Company will actively implement risk control measures, operate prudently, and prevent related risks.