1. Purpose of Conducting Foreign Exchange Derivative Trading
Entropy Technology Co., Ltd. (hereinafter referred to as "the Company") has a relatively high proportion of export business, with exports primarily settled in USD. Given the increased volatility in the foreign exchange market, the Company and its subsidiaries plan to conduct foreign exchange derivative trading to reduce the impact of exchange rate fluctuations on operational performance. The trading will be based on normal production and operations, adhering to principles of prudence, aiming to preserve currency value and reduce exchange rate risk, without engaging in speculative trading without actual demand or purely profit-driven foreign exchange transactions. By locking in exchange rates, the Company aims to mitigate the risk of performance volatility due to exchange rate changes.