Hongridar Technology Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
Important Content Reminder:
- Purpose of the Transaction: To avoid and reduce operational risks arising from fluctuations in the prices of major raw materials, Hongridar Technology Co., Ltd. and its wholly-owned subsidiary plan to conduct commodity futures hedging business at opportune times according to production and operation plans, fully utilizing the hedging function of the futures market to reduce the impact of raw material price fluctuations on the Company's production and operational costs.
- Types of Transactions and Trading Places: The futures varieties for hedging business are limited to those directly related to the production and operation of the Company and its wholly-owned subsidiary, specifically gold salts and copper materials. Trading places are limited to compliant and publicly recognized domestic futures exchanges, large brokers, and banks that operate legally.
- Transaction Amount and Duration: The maximum margin and premium for the commodity futures hedging business conducted by the Company and its wholly-owned subsidiary (including the value of collateral provided for trading, the expected credit limit from financial institutions, and the reserved margin for emergency measures) will not exceed RMB 50 million, and the maximum contract value held on any trading day will not exceed RMB 200 million. This limit is valid for 12 months from the date of approval by the Company's 2025 annual shareholders' meeting and can be used in a rolling manner within the validity period. The Company's chairman or authorized personnel are also authorized to approve matters related to the hedging business within the above limits and validity period.
- Review Procedures Completed and Planned: This matter has been reviewed and approved at the 22nd meeting of the 2nd Board of Directors and still needs to be submitted to the Company's 2025 annual shareholders' meeting for approval.
- Special Risk Reminder: The Company and its wholly-owned subsidiary will not engage in speculation or arbitrage through commodity hedging business; the main purpose is to avoid and prevent the impact of raw material price fluctuations on the Company's operations. However, there are still certain risks associated with conducting commodity futures hedging business, and investors are advised to pay attention to investment risks.